SOCAR to get $500m loan from world’s top banks

A major foreign bank syndicate will allocate $500 million to Azerbaijani state oil company SOCAR. The sides have signed a relevant loan covenant.

BNP Paribas, Calyon, Cooperatieve Centrale Raiffeisen-Boerenleenbank (Rabobank), JPMorgan Chase Bank, Societe Generale, Sumitomo Mitsui Banking Corporation Europe Ltd., the Bank of Tokyo – Mitsubishi UFG Ltd., as well as the Malta subsidiary of Akbank TAS acted as organizers of the credit during the initial syndication period. The loan will be disbursed for three years with the annual LIBOR+1.75% interest rate, SOCAR told AssA-Irada.

The loan was initially estimated at $300m but the amount was later raised by $200m. US Citibank and Dutch ABN Amro acted as bookrunners for the allocation.

The allocation is the first large-scale credit allotted to an Azerbaijani company by the world’s banking giants without a guarantee.

The funds will be used to implement projects both in the country and abroad, including the privatization of Turkish petrochemicals producer Petkim, as well as to finance other fields SOCAR considers a priority.*