BAKU, Azerbaijan, October 19. SOCAR Türkiye, a subsidiary of Azerbaijan’s State Oil Company SOCAR, has secured $1.6 billion in refinancing, the company said on October 19.
Reportedly, the syndicated financing was arranged under the leadership of First Abu Dhabi Bank (FAB) and Mizuho Bank.
The company said that the financing had been secured on favorable terms despite continued uncertainty in the global economy. The deal has a five-year maturity and is guaranteed by SOCAR.
"The syndicated financing involved 22 banks from Europe, the Far East and the Middle East. Demand for the transaction exceeded the targeted financing amount by 1.8 times. The deal stands out for its long repayment period and lower borrowing costs compared with previous loans and similar market transactions. The refinancing does not create any additional obligations for SOCAR," SOCAR Türkiye said in a statement.
SOCAR President and SOCAR Türkiye Board Chairman Rovshan Najaf said that securing financing on such terms reflects the high level of confidence international financial institutions have in SOCAR Türkiye.
"A refinancing transaction of this scale, arranged on favorable terms under the leadership of leading global financial institutions FAB and Mizuho Bank, demonstrates the strong confidence in SOCAR Türkiye at a time when uncertainty persists in global markets. This financing from international sources strengthens SOCAR Group’s liquidity and also shows that our projects have the support of financial institutions," he said.
As Türkiye’s largest integrated industry group, SOCAR Türkiye continues its activities in many sectors, primarily petrochemicals, refining, natural gas, trade, transmission, and distribution. The company says it is constantly increasing the production capacity, extending the value chain from the source to the end user.
With our Corporate Headquarters Business Unit operating under the name SOCAR Türkiye, the company works through three separate business units: Refinery & Petrochemicals, Natural Gas, and Portfolio Management. The companies SOCAR Türkiye leads under these business units are Petkim, STAR Refinery, SOCAR Storage, SOCAR Ticaret, Petkim RES in the Refinery & Petrochemical Business Unit, SOCAR Energy Trading in the Gas Business Unit; SOCAR Terminal, SOCAR Fiber, SOCAR R&D, SOCAR Insurance and TANAP in the Portfolio Management Business Unit.
