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By Amir Paivar
TEHRAN, June 21 (Reuters) - Iran Khodro, the largest car maker in the Middle East, plans a 300 million euro bond issue this autumn if it wins a credit rating from Fitch, a senior adviser to the company said on Monday.
This is believed to be the first major international bond issue from the Iranian corporate sector. Iran issued sovereign debt on the European capital markets in 2002, the first time since the 1979 Islamic revolution.
"If we get our credit rating in September, we expect to issue a 300 million euro bond in early or mid-autumn," said Behrooz Ataee, managing director of the Investment Banking Group, a former limb of Khodro that recently became independent of the company.
He added the car maker chose HSBC and BNP Paribas to lead the deal, seeking subscriptions for the bonds.
"We have a dream team of banks running for this," he said, explaining BNP Paribas was chosen for its standing in Europe and HSBC for its reputation in the Middle East.
He predicted a strong appetite for the car maker's bonds.
"I think these are going to be oversubscribed," he told Reuters.
Iran Khodro is state-run but has many publicly traded shares.
Ataee added the car maker would chose the adviser on the credit rating from foreign banks including BNP Paribas , Commerzbank and HVB .
The chosen bank will help Khodro prepare its case for Fitch.
Iran Khodro manufactured more than 450,000 vehicles in the year to March 2004. The car giant has around 30,000 employees in more than 103 affiliated companies.
It plans to increase manufacture to 750,000 vehicles including cars and buses in the year to March 2005.
France's Peugeot and Renault have both signed deals to make cars in Iran with Khodro.
Fitch rates Iran as B+, a sub-investment grade.