TEHRAN, Sept. 25 (Xinhua) -- Iran's Ministry of Petroleum announced Sunday that Japan will fund the development of some Iran's petrochemical projects, Press TV reported.
Japan's Marubeni Corporation has signed a deal with Iran's Persian Gulf Petrochemical Industries Company (PGPIC) to provide as much as 320 million euros (359.25 million U.S. dollars) for the development of PGPIC's petrochemical projects, the ministry said in a statement.
The fund will be realized through a mechanism known as the USANCE Letters of Credit (L/C).
The statement added that another deal will be signed with the Japanese side in near future to provide the PGPIC with another 640 million euros.
The PGPIC plans to provide an extra 10 billion U.S. dollars for its projects, the statement said but did not specify how the capital will be provided.
It was announced here in June that investors from Japan and South Korea were ready to finance Iran's petrochemical projects.
To access credit lines from other countries, Iran's Ministry of Economy and Finance is supposed to provide state guarantees.