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IRAN - July 10 - Foreign Bond Issue Completed.

Tehran completes its first foreign bond issue since the 1979 Islamic Revolution, attracting interest from institutional investors in the Gulf region and Europe. Alexis Plan, head of emerging-market debt syndication at Commerzbank AG in Frankfurt, which managed the sale with BNP Paribas SA, says the $497.1m offering was oversubscribed by at least 20%. Banks and asset managers in countries like Saudi Arabia and Bahrain snapped up more than half the issue. The bonds, which have a 5-year maturity, were priced to yield 8.95%. James McCormack, senior director of sovereign ratings at Fitch Ratings, told Bloomberg News: "This puts Iran square in the middle of international capital markets and provides a profile in the investment community. It's one of the most significant signs of change since the revolution". On July 10, Fitch assigned a B-plus rating to the bonds. EU institutional investors - particularly British and German asset managers - bought about 40% of the bonds, Plan said. A small fraction - about 5% - was sold to investors in Asia. (Tehran recently passed a series of laws to deregulate its currency markets and ease the flow of capital and goods into and out of the country).
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Publication:APS Diplomat Recorder
Article Type:Brief Article
Geographic Code:7IRAN
Date:Jul 13, 2002
Words:194
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