irans biggest cargo line looks at london share listing
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Iran's biggest cargo line looks at London share listing

Arab Today, arab today

Arab Today, arab today Iran's biggest cargo line looks at London share listing

London Stock Exchange
London - Arab Today

Iran's top cargo shipping company has held meetings in London to discuss a possible listing on the London Stock Exchange (LSE), but has so far been thwarted by US sanctions that still scare banks off Iranian business, four Iranian and two Western sources said.

Islamic Republic of Iran Shipping Lines (IRISL) was removed from international sanctions blacklists last year and after years of isolation aims to raise funds to modernise its fleet. It has already placed an order for new ships estimated to be worth $626 million. 

A floatation on the LSE would make it the first Iranian company to list on Britain's main exchange since the Islamic revolution in 1979.

But the difficulty in achieving such a landmark shows how far Tehran still remains from its goal of integrating fully with the global economic mainstream, since its 2015 deal with world powers to lift international sanctions in return for curbs on its nuclear programme.

President Hassan Rouhani, who faces a campaign for re-election in May, has struggled so far to demonstrate to voters real economic benefits from the deal. He won office in a landslide in 2013 on a promise to reduce Iran's isolation, and the nuclear deal is his crowning achievement.

Most international sanctions on Iran were lifted last year as a result of the nuclear deal. But the United States still has separate sanctions in place over Iran's missile programme and the administration of new President Donald Trump has signalled it would take a tough line.

The four Iranian officials and two Western financial sources told Reuters the Iranian company had expressed interest in an LSE listing. Two of the Iranian sources, both senior officials in Tehran, said meetings had already been held with the LSE in London about a possible float for IRISL.

IRISL officials could not be reached for comment. The LSE declined to comment.

All six Western and Iranian sources spoke on condition of anonymity to discuss an initiative that has not officially been made public.

US sanctions

Experts on sanctions say any Iranian IPO in London would run up against the impact of the remaining US measures, which have deterred British-based banks from clearing payments or facilitating transactions for Iranian companies.

Even the UK subsidiaries of Iranian banks with British licenses have yet to offer payment clearing services in sterling.

"In the current climate, I believe it is wholly unrealistic for IRISL to expect to pull off a listing in London," said Nigel Kushner, a leading London-based sanctions lawyer.

"In circumstances where no UK clearing bank is willing to become involved and when Iranian banks that may legitimately trade in London are still not able to clear their transactions in London, how on earth is a listing going to happen?"

The sources did not say how much capital IRISL was seeking to raise in a potential initial public offering.

During the height of sanctions, the United States and European Union blacklisted the shipping firm, accusing it of involvement in nuclear proliferation efforts, which it denied. A European Union court ruled in 2015 that the EU had not given valid reasons for the allegations against IRISL.

IRISL's ambitions to become a big global cargo carrier are constrained by the age of its fleet. It operates 26 ships, worth just $166 million, according to ship valuation company VesselsValue. IRISL placed an order in December for 10 ships with South Korean shipbuilder Hyundai Heavy Industries Co Ltd. Those ships would be worth $626 million, according to VesselsValue.

If it is still too difficult to hold an IPO in London, Iranian companies, including from the telecommunications sector, could turn instead to Italy's stock exchange for a potential listing, Iranian sources said.

The Italian stock exchange, Milan's Borsa Italiana, is part of LSE Group. Borsa Italiana declined to comment.

For Iran, pressures to show more progress are mounting ahead of the country's presidential election in May. Hardline opponents say Rouhani has failed to win an economic windfall from his nuclear deal, and some voters are losing patience.

"Despite Rouhani's and his government's efforts, almost all banking transactions are blocked," said one senior Iranian banking official.

"This will impact the upcoming election and as you see hardliners have been using it against Rouhani in the past few weeks. Without foreign investment and the financial backing of major international banks, Iran's economy cannot recover."

Source :Times Of Oman

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

irans biggest cargo line looks at london share listing irans biggest cargo line looks at london share listing

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

irans biggest cargo line looks at london share listing irans biggest cargo line looks at london share listing

 



GMT 16:52 2017 Tuesday ,21 February

Iraqi troops push into Daesh-held southern

GMT 10:50 2017 Tuesday ,05 December

Technip lands Bahrain refinery mega contract

GMT 08:12 2017 Monday ,10 April

Minister receives School Mini Olympics winners

GMT 13:15 2017 Thursday ,31 August

Al-Basher Arrives in the Holy Land

GMT 18:19 2017 Tuesday ,17 October

Producers' group moves to expel Weinstein

GMT 13:00 2015 Sunday ,18 October

DEWA participates in 11th Women’s Forum in France

GMT 15:48 2017 Wednesday ,22 February

GOIC Encourages Paper Industry in GCC States

GMT 02:41 2016 Tuesday ,08 November

US, Turkey COS held talks on Syria, Iraq

GMT 23:18 2017 Wednesday ,22 November

HRH Premier lauds Bahrain's ability to host major events

GMT 06:53 2017 Friday ,03 March

Ahly's former happy for CAF honoring

GMT 05:09 2017 Saturday ,25 February

Oprah Winfrey slated to address college graduates

GMT 23:47 2017 Monday ,13 November

Mohammed bin Rashid receives Italian Prime Minister

GMT 21:43 2016 Monday ,19 September

US airstrike allegedly kills 8 afghan policemen

GMT 18:29 2017 Monday ,11 September

British MPs to vote on bill to avoid 'chaotic' Brexit

GMT 10:41 2017 Sunday ,12 February

Quebec says 'No to Islamaphobia'

GMT 23:52 2017 Saturday ,09 September

France Says 26 French Hurt in Barcelona Attack
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday