1. In the name of God

2. Iran’s Petrochemical Financing
Challenges Ahead
Tehran, 22 April, 2017

3. Rich Raw Material Crude Oil Reserves 157 Billion barrels
10% of world's total reserves
4th in the world
Natural Gas Reserves Trillion cubic meters
18% of world's total reserves st in the world

4. Petrochemicals at Stock Market
Attractive industries P/E Share of Total Market %
Petrochemical

5. Petrochemicals
Current capacity : million tons/ year
Next 10 years plan target : 130 million tons/ year
Production (2016): million tons

6. Financing package is required
Main Challenge
The Main Challenge:
Over 30 Billion Euros
Financing package is required
Within next 5 years

7. Bank of Industry & Mine BIM: Development Bank
60 years of successful experience
1.6 Billion Euros Paid Capital
11 Billion Euros Asset
1100 Human Capital

8. Sample of Financed Projects by BIM
Steel Mill
Actual production (2016): Million tons
Iran’s Global Rank 14th
New Capacities Financed : 8.5 Million
by BIM during past 4 years tons/year
Financing Volume: Billion Euro
Yazd, Neyriz, Baft, Shadgan, Ghaenat, Sepid Dasht, Mianeh, Sabzevar, Dezful, Bandar Abbas , Azna

9. Sample of Financed Projects by BIM
Energy Projects
Power Plants
3000 MW (6 x 500 MW plants) 1.6 Billion Euro
Golestan, Behbahan, Kahnooj, Sirjan, Yazd, Noshahr
2 x 10 MW Solar Farm
Yazd, Zahedan
400 MW (38 CHPs) 200 Million Euro

10. Sample of Financed Projects by BIM
Infrastructure
The 1st Fast Train Tehran – Isfahan Billion Euro
2nd Fast Train Tehran – Mashhad* Billion Euro
Expansion and Modernization of Ports
Bandar Imam, Bandar Abbas, Jaask, Chabahar, Amir Abad
Ship Building & Oil Rigs
*Under Study

11. Sample of Financed Projects by BIM
Aviation Projects
Aircraft Engines’ overhaul
The New Airbuses
Expansions of Imam Khomeini Airport *
Further Expansion of Aviation Fleets*
* Under Study

12. Sample of Financed Projects by BIM
Petrochemical
Kavian Petrochemical Plant Million Euro
Ethylene
Ilam Petrochemical Plant Expantion Million Euro
Ethylene - HDPE
Lorestan Petrochemical Plant Million Euro
HDPE
Mahabad Petrochemical Plant Million Euro
LDPE
MS Petrochemical Plant Million Euro
Urea – Ammonia

13. Sample of Financed Projects by BIM Oil, Gas & Petrochemicals
Lavan Development Million Euro
Methanol & Ammonia
Oil & Gas Upstream Million Euro
Crude Oil & Gas
Bushehr Petrochemical Plant* 2300 Million Euro
Methanol – Ethylene – HDPE - EG
PG Bidboland Gas Refinary* Million Euro
Ethan – propane – Butane – Liquid Gas
* Syndicate Member

14. Subsidiaries BIM Investment Company BIM Brokerage Company
BIM Exchange Company
BIM Leasing Company
Atye-Damavand Investment Company
Iran Chemical Industries Investment Company (ICIIC)

15. Europäisch - Iranische Handelsbank AG
Subsidiaries
Europäisch - Iranische Handelsbank AG
EIH
based in Hamburg

16. Challenges
Fund raising & Financing is the most critical Challenge We should have a Plan and a Tailor Made Solution for it

17. Financing Resources NDF (National Development Fund)
Government Budget Allocations
Diversified Financial Tools
Islamic Banking
Sukuk
Convertible Bonds
IPO

18. Financing Resources International Financial Institutions
JVs and Mutual Funds
Leasing Companies
Investment Houses
FDIs

19. Iran : Almost a Debt Free Country
Iran’s Foreign Debt
Iran : Almost a Debt Free Country

20. Challenges Country/Companies Risk Rating : Risk Portfolio :
Political, Legal, Reputational
Market, Pricing, Competition
Technology, HR
Inflation, Exchange rate
Credit, Liquidity & Operational Risk

21. Risk Mitigation
Growing Market
Safe & Secure Environment
Euro Based Transactions
Unified Exchange Rate Ahead (Single Currency)
Overcoming lack of Professional Expertise

22. ECAs Coverage

23. 6 BB- 7 B Sovereign Rating Most Probably 5 in 2017 Q1
Stable Economic Outlook

24. Challenges Reintegration to Global Banking Community
Updating Iranian Banking Compliance Policies
And :
Snap Back

25. Solutions to Challenges
Solutions & Strategies :
Building a long-term Sovereign yield curve & Rating
Developing a liquid primary and secondary government bond market, reducing refinancing risk
Developing a sound regulatory framework for structured instruments (securitization, leasing, factoring derivatives)
Urging foreign Banks to join Iranians’ for Co-Financing

26. Solutions to Challenges
Solutions & Strategies :
Trying to have an Updated Regulated Banking System
Basel III, Corporate Governance, Compliance
AML/CFT, FATCA, FATF
Projects of national interest, with stable cash flows
Adequate protection for concluded contracts during sanction relief is available

27. No Risk Guaranteed Market : The applicable Currency: Euro
Risk Mitigation
Guaranteed Market :
Oil, Gas & Petrochemicals
Global Off Takers are available
Unified Exchange Rate is ahead
Moving towards Commitment changing IRR to Euro
The applicable Currency: Euro
No USD Involvement
No Risk

28. Solutions to Challenges
FATF Update
21 October 2016
Applying Due Diligence to business relationships and transactions with natural and legal persons from Iran.
24 June 2016
The FATF has suspended counter-measures against Iran for a period of 12 months

29. The Government Policies
Creating an Excellent Political & Economical Relation with Global Community
Providing Secure, Stable & Sustainable Business Climate
Urging The Banks to Meet all New Regulatory and Compliance Issues
Initiating an Efficient Environmental Policy & Measure
Moving Towards more Free & lean Economy i.e. Less Price Control by Government

30. We just need to be better at working together
What Next?
We just need
to be better
at working together
Hoping to see the serious break in the clouds,
having better time ahead to strengthen ties with the world

31. Many Thanks
AAAfkhami, 22 Apr, 2017, Tehran