The agreement was signed between Persian Gulf Petrochemical Industries Company (PGPIC) and Itochu. It envisages providing as much as €320 million for the development of PGPIC's petrochemical projects, IRNA reported.

This will be carried out through a mechanism known as the Usance Letter of Credit (L/C), added the report.

The PGPIC signed the first such agreement with the same specifications with Japan's Marubeni earlier in September. 

The company had earlier announced that it has devised serious plans to attract funds for its petrochemical projects through a series of agreements that include Usance deferred payment and short-term finance schemes. 

Talks to the same effect are currently underway with several European companies including some major German enterprises, added IRNA. 

The PGPIC plans to attract a total of $12 billion in investments by German companies, added the report.