PGPIC Secures Approval for Largest Capital Market Bond Financing

PGPIC Secures Approval for Largest Capital Market Bond Financing
(Sunday, May 18, 2025) 14:24

TEHRAN (NIPNA) – Persian Gulf Petrochemical Industries Company (PGPIC), Iran’s largest petrochemical holding, has obtained regulatory approval for what is being described as the biggest capital market financing through securities in the country's history, its CEO announced on Sunday.

Mohammad Shariatmadari, CEO of PGPIC, said the permit allows the issuance of 120 trillion rials (approximately $240 million) in Islamic lease bonds (sukuk), in line with the national economic theme for 1404 (March 2025–March 2026), designated as the “Year of Investment for Production” by Iran’s Supreme Leader.

“PGPIC currently holds over $12 billion in incomplete projects, and securing this funding is crucial to bring priority projects with high progress rates to completion,” Shariatmadari stated, according to a company release cited by NIPNA.

The bond issuance will be executed in three tranches of 40 trillion rials each, with a four-year maturity and a fixed annual interest rate of 23 percent, payable quarterly.

Shariatmadari noted that the offering will be managed through a consortium of financial institutions and investment firms. Proceeds will be used to complete high-priority petrochemical projects across the holding.

He also pointed to the recent sale of PGPIC subsidiary Arzesh Mandegar Khalij Fars for over 380 trillion rials (roughly $760 million), stating that the full proceeds from the sale would be reinvested into ongoing project development.

“This is a clear step toward realizing investment-led production and strengthening our capital structure to meet strategic industry goals,” he said.

The initiative is seen as a significant move to deepen Iran’s capital markets and support industrial development amid ongoing international sanctions and funding constraints.

 


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