HSBC to Arrange $500 Million Credit Line for Iran
November 21, 2000 - 0:0
LONDON -- HSBC, one of the world's largest banks has agreed to arrange a credit line of $500 m, to finance new projects in Iran.
The London-based Investment Bank has "concluded a framework agreement" with six local banks, according to the weekly Middle East Economic Digest (MEED).
These banks have been named as Bank Melli Iran, Bank Saderat, Bank Tejarat, Bank Sepah, Bank Mellat and Export Development Bank.
Hong Kong and Shanghai Banking CORPORATION (HSBC), which has its roots in Iran, is going to be "working" with several European banks in syndicates formed for every project as and when nominated by Iran, it added.
The loans are said to enjoy the backing of state insurance cover of Hermes of Germany, Coface of France, Sace of Italy and Export Credit Guarantee Department (ECGD) of UK which recently agreed to provide cover.
They would "probably provide the bulk of state insurance cover," the weekly said quoting a HSBC official.
The final agreement is expected to be signed in a ceremony in London later this month, which will be attended by officials from the Iranian banks.
In recent years several project finance lines for Iran have been arranged by European banks, the latest being the $530 m credit line arranged by German Deutche Bank in July.
Further deals may be in the pipeline with UK's Lloyds Bank TSB said to be in discussion over new finance deals.
Lloyds TSB, which maintained its representative office in Tehran even during the Iraqi-imposed war, is reported by meed to be interested in providing finance for "a large number of projects," including "offshore oil and gas." HSBC, was originally established in 1865 in Hong Kong and Shanghai but only became a major banking institution after it purchased the British Bank of the Middle East (now HSBC Bank Middle East), which had begun life as the Imperial Bank of Persia in 1889.
(IRNA)
The London-based Investment Bank has "concluded a framework agreement" with six local banks, according to the weekly Middle East Economic Digest (MEED).
These banks have been named as Bank Melli Iran, Bank Saderat, Bank Tejarat, Bank Sepah, Bank Mellat and Export Development Bank.
Hong Kong and Shanghai Banking CORPORATION (HSBC), which has its roots in Iran, is going to be "working" with several European banks in syndicates formed for every project as and when nominated by Iran, it added.
The loans are said to enjoy the backing of state insurance cover of Hermes of Germany, Coface of France, Sace of Italy and Export Credit Guarantee Department (ECGD) of UK which recently agreed to provide cover.
They would "probably provide the bulk of state insurance cover," the weekly said quoting a HSBC official.
The final agreement is expected to be signed in a ceremony in London later this month, which will be attended by officials from the Iranian banks.
In recent years several project finance lines for Iran have been arranged by European banks, the latest being the $530 m credit line arranged by German Deutche Bank in July.
Further deals may be in the pipeline with UK's Lloyds Bank TSB said to be in discussion over new finance deals.
Lloyds TSB, which maintained its representative office in Tehran even during the Iraqi-imposed war, is reported by meed to be interested in providing finance for "a large number of projects," including "offshore oil and gas." HSBC, was originally established in 1865 in Hong Kong and Shanghai but only became a major banking institution after it purchased the British Bank of the Middle East (now HSBC Bank Middle East), which had begun life as the Imperial Bank of Persia in 1889.
(IRNA)