According to the report, the first contract of financing out of international markets in short-term letter of credit form (USANCE) was signed in the Persian Gulf Petrochemical Industries Company (PGPIC).
The first contract to meet financial resources was signed in the usance form with Japan and under NEXI insurance coverage, while the contract with Marubeni was signed in Tokyo, Japan, to the value of 320 million euros on September 1.
The PGPIC representatives were timely present in such international conferences as the Geneva Conference, Vienna Conference, Berlin Conference and Frankfurt Conference and favorably introduced the company as the biggest holding company of the country, thus winning trust of the export insurance institutions and international creditors and banks. They made necessary coordination to define structures to allay need for financial information they requested.
The outcome of such a move was decision of the export insurance institutions to accept the PGPIC, just relying on the holding label without receiving any other guarantee within the framework of the corporate guarantee.
Following the contract, talks are underway with rival Japanese company to use similar facilities and then another contract to the same value, which can be increased to the tune of 640 million euros, is in final stage. It will be officially signed in the near future.
Also, the PGPIC has been successful to observe mandates of financial bills and concord them with the IFRS, which is among exigencies of long-term measures for security financial sources. Under present junctures, structural talks for financing in long-term form are underway with the international creditors and once banks enter the state, the possibility will be provided.
According to the PGPIC report, the company has been successful in light of its policies to provide necessary financial sources in usance form up to the value of one billion euros on condition of mid-term repayment of about 500 million euros.