Japan has reportedly agreed to fund the development of some petrochemical projects in Iran.
A deal has been signed between the Persian Gulf Petrochemical Industries Company (PGPIC) and Japan’s Marubeni to provide as much as €320 million for the development of PGPIC’s petrochemical projects, IRNA reported.
The financing will be done through a mechanism known as the Usance Letter of Credit (L/C), which permits the beneficiary to be paid immediately upon presentation of specified documents or at a future date as established in the sales contract.
IRNA added that another deal that envisages providing PGPIC with an extra €640 million is close to finalization and will be singed in the near future.
It also said that PGPIC plans to provide an extra $10 billion for its projects but did not specify where and how the sum is planned to be provided.
Isa Mashayekhi, the managing director of Iran’s Petrochemical Commercial Company International (PCCI), was quoted by the media as saying that his company is negotiating with some Japanese and Korean investors to attract an investment of €520 million for its projects.
Mashayekhi added that Iran’s Ministry of Economy and Finance should provide state guarantees to access credit lines from other countries, Xinhua reported.
PCCI is a subsidiary of PGPIC which is in charge of talks with international companies for financing petrochemical projects and attracting investments for PGPIC projects, Xinhua added.