Petrochemical Investment Manager: Capital Market Can Become the Financing Engine for Petrochemical Projects

According to Shana, citing the National Petrochemical Company, Hamidreza Ajami stated on Monday (November 25) at the specialized session on “Investment and Financing in Petrochemical Industries” at the International Conference on Investment in the Oil, Gas and Petrochemical Industries: The petrochemical industry, despite its structural differences compared to the oil and gas fields, has a special position in terms of investment volume, strategic importance and its role in the country’s foreign exchange earnings, and its financing should be done with a different perspective and in accordance with the characteristics of this industry.
Referring to the capacities of the domestic capital market, he added: The value of the country’s capital market is approximately high and can play an important role in financing petrochemical projects, especially projects that can be completed and produced within a period of one to four years and provide the attractiveness of a rapid return on investment for retail and institutional investors.
Controlling Risks with Transparent Financial Models
The Investment Manager of the National Petrochemical Industries Company, emphasizing that the entry of projects into the capital market must be accompanied by transparent financial models and strong management structures in order to control risks and strengthen investor confidence, stated: Some regulations and rules should be reviewed to reduce administrative and financial costs, and the design of new financial instruments such as project-based bonds, construction funds, and financing contracts should be on the agenda.
Ajami, stating that the government’s duty is not to be an entrepreneur, but rather to be a policymaker and regulator, clarified: The National Petrochemical Industries Company should act as a hub for directing capital and put on its agenda the provision of ready-made investment packages, ensuring the transparency of financial information of projects, and creating incentive mechanisms for the participation of the private sector and retail investors. Global experience also shows that the appropriate combination of government support and the freedom of the private sector brings the best results in attracting capital and sustainable development.