Baku, Azerbaijan, Sept. 14
By Maksim Tsurkov - Trend:
The SOCAR company has no plans regarding a new issue of Eurobonds, the head of SOCAR Rovnag Abdullayev told reporters Sept.14.
"Despite the fact that the revenues of SOCAR decreased significantly due to the fall in oil prices, we don't plan to issue Eurobonds," he said.
SOCAR placed 15-year Eurobonds with volume of $750 million with a yield of 6.95 percent in March 2015.
Proceeds of the placement of bonds are being used 50 percent for capital spending related to the Star refinery in Turkey, and the remainder refinancing of short term debt and for general corporate purposes.
Deutsche Bank and JP Morgan have been chosen as managers of the issue.
SOCAR has already implemented two issues of Eurobonds. SOCAR's Eurobond debut issue to the amount of $500 million with a yield of 5.45 percent per annum was made in February 2012. The maturity date of the primary Eurobond issue was set at February 9, 2017.
On March 11, 2013, SOCAR implemented its second issue of Eurobonds to the amount of $1 billion for 10 years with a yield of 4.75 percent per annum on the CEEMEA market (Central and Eastern Europe, the Middle East, Africa). The demand for them was three times more than the volume.
The debut sovereign Eurobonds with an interest rate of 5 percent and the loan repayment in 2024 were placed in the amount of $1.250 billion on March 10.
The second issue of SOCAR's Eurobonds occurred with the help of Deutsche Bank with a yield of 4.75 percent. At present, the interest rate on the bonds is 5.8 percent per annum. More than $3 billion have been already drawn due to this transaction.
Edited by CN
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