The deal is the first of its kind to be backed by the UK’s Export Credits Guarantee Department (ECGD) since the resumption of credit cover to Iran by the UK in October 2000 (MEED 13:10:00).

Co-lead arranging banks on the Eur 24.1 million ($23.5 million) facility are the London branch of Societe Generale and Lloyds TSB, providing Eur 10 million ($9.7 million) each, with Bank Sepah Internationalparticipating in the transaction at Eur 4.1 million ($4.0 million). The loan was arranged on a buyer credit basis.

ECGD says security for the transaction will come from proceeds generated through the sale of petrochemical products exported by NPC. It is the first time that ECGD has applied this type of structure, which has been used frequently by other European credit agencies.

The UK’s Air Productswill provide the air separation units for Fajr, a utility complex providing electricity, steam and water and other services to petrochemical plants located in the Bandar Imam petrochemical special economic zone (petzone).