Wednesday , 23 May 2018
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Iranian shipping line weighs up London IPO

Islamic Republic of Iran Shipping Lines (IRISL) is eyeing up a listing on the London Stock Exchange (LSE) but US sanctions have thus far proved to be an obstacle for banks according to Reuters.

Iran’s biggest shipping line is looking to raise funds to modernise its fleet, having already ordered new ships at an estimated cost of US$626m.

Conflicting reports have emerged with the carrier telling Iranian media that it has no plans to offer its share on the LSE.

Although the shipping line was removed from international sanctions last year, the US still has separate sanctions in place related to Iran’s nuclear program and President Trump has threatened to scrap 2016’s nuclear deal.

At the most severe point of the sanctions, the US and the EU blacklisted IRISL for alleged involvement in nuclear proliferation, which it denied.

An EU court later ruled in 2015 that the EU had not provided valid reasons for the allegations against the carrier.

Reuters‘ sources indicated that meetings had taken place with the LSE while Italy’s stock exchange is being lined up as an alternative if London proves a bridge too far.

The news agency reported that existing US sanctions have deterred British-based banks from clearing payments or facilitating transactions for Iranian companies.