Senior economic and industry leaders emphasized that these tools will accelerate financing for strategic projects, strengthen the petrochemical value chain, and enhance national FX management capacity.
Central Bank Governor Mohammad-Reza Farzin stated that the core challenge facing productive sectors is access to reliable FX funding. He emphasized that several industrial megaprojects require FX-based financing, prompting the Central Bank to design new FX-denominated instruments.
Farzin noted that six previous rounds of sovereign Sukuk had mobilized USD 510 million for FX financing. “Today we are launching the seventh issuance, valued at USD 150 million, of which USD 70 million will be placed immediately,” he said. According to Farzin, this round of financing will raise the capital value of Bandar Imam Petrochemical to USD 400 million.
He reiterated the Central Bank’s annual target of issuing USD 1.5 billion in FX securities, stressing that a new suite of FX and rial-based financing tools is being finalized in collaboration with the Ministry of Economic Affairs and the Securities and Exchange Organization. These include an FX fixed-income fund and an FX project fund, now under review by the Central Bank’s High Council.
Hassan Abbaszadeh, CEO of the National Petrochemical Company, highlighted ongoing cooperation with the Central Bank and Ministry of Economy, noting that the sector exports around USD 15 billion annually, of which only USD 3 billion is used for equipment, catalysts, and spare parts. The remainder is supplied to the Central Bank in exchange for rial liquidity or feedstock.
He said that petrochemical projects under the Seventh Development Plan require USD 26 billion in FX, of which USD 13 billion remains unfunded. Projects beyond the plan represent an additional USD 44 billion in investment, with many currently at licensing or primary approval stages.
Abbaszadeh underscored that the new wave of projects under review—including the seven highlighted at the event—face no feedstock risk. He emphasized that major initiatives such as Bidboland Gas Refining, Hoveizeh, and multiple flare-gas recovery projects are feedstock-self-sufficient. According to NPC evaluations, nearly USD 3.8 billion has already been invested in flare-gas collection, including more than 1,000 km of pipeline across four provinces. Once completed, ongoing projects will collect 1.5 bcf/d of associated gas—equivalent to 42 mcm/d—surpassing the entire current feedstock intake of Iran’s petrochemical sector.
He reiterated that petrochemicals consume only 9 percent of the nation’s gas production and argued that feedstock constraints originate from inefficient household consumption rather than resource limitations. Abbaszadeh also urged accelerated completion of key projects in Pars, Bandar Imam, and Hormoz, where valuable ethane is still being flared due to infrastructure delays.
NPC submitted three formal requests to the Central Bank:
- classifying revenues from flare-gas recovery products under the secondary FX market;
- applying a 90 percent FX-commitment requirement in the first year for exporters entering new markets such as Africa, Eurasia, and India; and
- prioritizing petrochemical projects in external credit lines and FX-financing programs.
He also highlighted the industry’s major investments in solar power generation aimed at reducing gas wastage by low-efficiency power plants, enabling more gas to be converted into high-value petrochemical exports.
Mehdi Ghazanfari, CEO of the National Development Fund (NDFI), welcomed the expansion of FX financing tools, stating that such instruments help reduce direct reliance on the fund for project financing. He stressed that Persian Gulf Petrochemical Industries Company (PGPIC) has strong profitability indicators, making it an ideal candidate for market-based FX funding. Ghazanfari encouraged broader participation from private-sector investors in FX bond markets.
Hadi Akhlaqi, CEO of Bank Tejarat, said the bank—responsible for nearly 20 percent of Iran’s international banking operations—has played a central role in FX financing of strategic projects. He confirmed that Tejarat has committed USD 1.05 billion across seven PGPIC-related projects and will complete the full financing package by year-end.
Akhlaqi emphasized that FX Murabaha bonds are voluntary and well-received by institutional investors and that all previous issuances have demonstrated strong performance. He stated confidently, “Our credit assessment of PGPIC is solid, and all obligations will be fulfilled.”
Mahmoud Aminnejad, Deputy CEO for Planning and Business Development at PGPIC, highlighted the role of Murabaha bonds in accelerating Bidboland’s ramp-up. At inauguration, only 40–45 percent of the plant’s design feedstock capacity was available due to upstream delays. Despite this, Bidboland has since become one of the most reliable projects in FX repayment, having already fulfilled nearly USD 2 billion in obligations.
He confirmed that increased feedstock supply and project synchronization raised operating rates to 80–85 percent, enabling nearly USD 900 million in export revenue last year. Aminnejad emphasized that upcoming projects selected for FX-bond financing are fully vetted, economically justified, and designed to ensure certain FX returns.
He urged the Central Bank to allow companies with development projects to sell at least 50 percent of their FX earnings in the secondary market, citing the significant impact of FX differentials on project cost structures, especially for major undertakings such as Bandar Imam (USD 1.5 billion) and Bidboland (USD 2.5 billion).
Aminnejad concluded that refinements made jointly by the Central Bank, the FX & Gold Exchange Center, and the lead banks have resolved earlier challenges, ensuring that proceeds from the FX bonds will be directed exclusively into high-return, export-driven projects that benefit both industry and the national economy.
The introduction of these instruments marks a turning point in Iran’s project-financing landscape, reinforcing the petrochemical sector’s role as a central engine of value creation, FX generation, and industrial modernization.