Arghavan Gostar Petchem Plant Receives Green Light to Issue IRR 10 Trillion in Sukuk

Arghavan Gostar Petchem Plant Receives Green Light to Issue IRR 10 Trillion in Sukuk
(Sunday, May 25, 2025) 15:05

TEHRAN (NIPNA) – Arghavan Gostar Ilam Petrochemical Co., a subsidiary of the Persian Gulf Petrochemical Industries Company (PGPIC), has received regulatory approval to issue IRR 10 trillion ($19.4 million) in Islamic lease-based bonds (sukuk ijara) to fund the near-complete polypropylene project in western Iran.

According to a statement from PGPIC’s public relations office, the five-year bonds will carry a nominal interest rate of 23%, with quarterly coupon payments. Bank Tejarat (Public Joint Stock Company) has been named as the guarantor for both the principal and interest payments.

The sukuk will be backed by part of the polypropylene plant’s equipment, which is currently 97% complete and designed to produce 150,000 metric tons of polypropylene per year.

The bond issuance is expected to support the final stages of construction and facilitate the launch of commercial operations, as Iran continues to expand value-added petrochemical production despite economic sanctions and market volatility.

 


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