According to the Exchange Center, the proceeds will finance the
company’s chlor-alkali complex, which is replacing its mercury-based process
with membrane technology. The offering is the first foreign-currency Murabaha
bond in Iran to be issued with the U.S. dollar as the base currency.
Bandar Imam is developing a 330,000-tonne-per-year chlor-alkali unit
and an annual 294,000-tonne chlorine capacity to strengthen the country’s PVC
value chain. The wider chlor-alkali investment, valued at more than $370
million, includes the use of a dedicated 1,500-hectare salt lake within the
company’s site.
Once operational, the project will add caustic soda to the company’s
product portfolio and raise total chlorine chain capacity to 1.28 million
tonnes per year. The company expects the sale of PVC, EDC and caustic soda from
the project to generate $320 million in foreign-currency revenue in the first
year, $360 million in the second year and $400 million annually from the third
year onwards.
The bonds are part of a two-phase financing plan totalling $150
million for the project.
Each order must cover a minimum of 1,000 bonds – equivalent to $1
million – with no upper purchase limit for individuals or institutions. The
annual profit rate is 6%, payable in dollars through the issuing agent.
The bonds have a four-year maturity. Subscription opens on Dec. 9 and
runs until Dec. 16. The settlement period for foreign-currency transfers will
start on Dec. 17 and continue until Jan. 4, with a possible 15-day extension if
required.