Iran's energy minister aims to issue $1 billion of dollar denominated bonds, the students news agency Isna reported on Saturday.

'We are preparing to issue $1 billion of bonds to develop electricity and water projects,' Majid Namjou told Isna, adding the bonds would be offered inside Iran and abroad.

Namjou's announcement comes as plans to merge his ministry with the Oil Ministry are on hold due to opposition from parliament.

Iran is under increasingly tight economic sanctions due to western fears it is seeking nuclear weapons capability, something Iran denies.

The sanctions make it harder for Iran to find foreign investors in its oil and gas sector and to access international financial services.-Reuters