Iran boosts total value of bonds offered for South Pars gas

TEHRAN,Feb.1(MNA)--The total value of bonds being issued to finance development of the South Pars gas field has been increased by 27 per cent, due to an anticipation of high public demand. National Iranian Oil Company’s (NIOC) managing director Ahmad Qalebani said that Iran will start offering 11.5 trillion rials (some $940 million) in bonds on February 4, a 27 per cent premium on the nine trillion rials (around $735 million) previously planned. The 4-year paper will be issued through nationwide branches of Tejarat and Mellat banks, and will offer a 20 percent yield per annum. On November 26, 2011, $500 million in bonds was offered with a 17 percent yield, but there was little uptake. Five billion dollars in bonds will be issued in the current Iranian calendar year (to end March 20, 2012) to speed up the implementation of South Pars gas field projects, the NIOC head had previously said. According to Oil Minister Rostam Qasemi, Iran will also issue $15 billion in sukuk (Islamic Sharia-based) bonds in the current year to be invested in the domestic oil industry. The South Pars gas field is shared by Iran and Qatar. The Iranian share, which is divided into 29 phases, has about 14 trillion cubic meters of gas, or about eight percent of the total world reserves, and more than 18 billion barrels of liquefied natural gas resources.