Australia & New Zealand Banking Group (ANZ), together with its regional subsidiary ANZ Grindlays Bank, has reached a framework agreement with Iran on finance lines totalling $250 million.

The agreement carries a sovereign guarantee and requires cover by the relevant state export credit agencies.

ANZ's role will be as executor of the framework agreement and provider of finance. The borrowers will be Bank Mellat, Bank Melli Iran, Bank Sedarat, Bank Sepah and Bank Tejarat - Iran's five main state commercial banks (see Iran).

The agreement provides funding for 85 per cent of capital procurement on a specific project, where there is state insurance cover of 100 per cent. The remaining 15 per cent will represent the downpayment of the funded amount.