SHANA - The National Iranian Oil Company (NIOC) will start offering Rls. 20,000 billion worth of fixed rate bonds (Manfa’at Bonds) on Wednesday, March 13, 2019, in order to provide financing for projects aimed at production enhancement and maintenance of oil fields.

The CEO of NIOC said the bonds would be offered at Fara Bourse, an over-the-counter market for securities and other financial instruments in Tehran, the Iranian capital.

According to NIOC, Masoud Karbasian said the bonds would be issued by Saba Arvand Oil and Gas Development Company with the guarantee of the National Iranian Oil Company, adding that the intruments were to be offered with a nominal rate of 19% and a three-year maturity period. The interests would be payable every six month, he added.

According to him, considering the capital market capacities and the domestic interest for the bonds, NIOC might consider continuing to provide capital for its projects by selling interest-bearing bonds in the future.

"In addition to fixted-rate bonds, National Iranian Oil Company will have on the agenda other financial intruments for financing oil and gas projects next year,” the official added.

NIOC has planned to sell Rls. 30,000 billion in interest-bearing bonds by the end of the current calendar year to March 20.