The Saudi-based Islamic Development Bank (IDB) announced on Monday that it has approved a $35 million loan to Iran, reported the official Iranian news agency (IRNA).
The loan is to be made available for upgrading the Tehran-Mashhad railroad.
The loan repayment period is 12-years and local currency equivalent of $71.94 million has previously been disbursed by the Iranian government for the project.
Meanwhile, the Middle East Economic (MEED) Digest, in its latest issue quoted a London-based banker that the bulk of investors for
Iran's debut in the Eurobond market are expected to come mainly from Europe, with a smaller share coming from Asia and the Middle East, said the agency.
Iran's return to the international debt markets was marked by the central Bank of Iran (CBI) outlining proposals for the landmark sovereign issue that is expected to have a minimum size of Euro 300 million ($272 m) with maturity of five-to-seven years.
Underwriters are understood to include major French, German, Swiss and UK banking institutions.
The absence of US investors, banned by sanctions, is unlikely to have a negative impact on the pricing of the bond due to the strong interest from European and expatriate investors, according to bankers, quoted by MEED.
The bond is expected to be launched in the final quarter of the year, after Standard & Poor's issue a sovereign credit rating for
Iran, which it has been mandated to do by the end of October, according to the agency – Albawaba.com
© 2001 Al Bawaba (www.albawaba.com)
