With the announcement that Iran's national oil company will now issue $1bn worth of bonds to develop the South Pars Oil Field, the question presents itself: why will European banks risk US and/or UN sanctions by handling these instruments ? The bonds, which will return 5.5 to 8%, will reportedly be issued in Euros, and in up to €100,000 denominations, are being marketed by a government-owned [and sanctioned] Iranian financial institution. Apparently Iran's Parliament has authorised the issuance of up to €5bn.

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