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A consortium of international banks led by Deutsche Bank has signed a US$1.75bn financing package for National Iranian Oil Company (NIOC). The package will be used to finance supplies and services from several European and Asian countries for the development of phases 9 and 10 of the South Pars Gas Field in Iran.

The package consists of two framework facilities:

A framework facility of US$1.22bn which is to be supported by official export credit agencies from Europe as well as the Export-Import Bank of Korea who have already indicated their readiness to support this structure.

A complementary framework facility of US$525mn providing for commercial credits to NIOC.

The following bank have so far joined the consortium: Deutsche Bank, the Export-Import Bank of Korea (acting also as direct lender), KfW, Natexis Banques Populaires, BNP Paribas, Commerzbank, ING and SG Corporate & Investment Banking.

The financing is backed by an offshore collateral structure based on oil and gas product receivables under offtake contracts of NIOC with reputable export trading companies. The package will meet more than 85% of the financing requirements of the proposed investments for phases 9 and 10 of the South Pars Gas Field Development. NIOC intends to use the financing structure developed therefore also for its other major investment projects.