SOCAR to place Eurobonds worth $500m

SOCAR to place Eurobonds worth $500m
Azerbaijan’s state oil company SOCAR says it will place its debut Eurobonds with the UK Listing Authority and London Stock Exchange. The company has chosen Citigroup and Deutsche Bank to lead the issue, SOCAR said..

“Citigroup Global Markets Limited, Deutsche Bank AG (London branch) and the Royal Bank of Scotland act as joint lead managers, while Nomura International Plc and Société Générale S.A act as co-managers, the Deutsche Trustee Company Limited as the trustee and Deutsche Bank AG (London Branch) acts as the principal paying and transfer agent,” SOCAR said.

Investor meetings begin today and a transaction will follow, subject to market conditions. The bond issue, part of SOCAR’s plan to create new financial instruments, aims to bring in investment from the international capital markets, the company said.

It did not specify the purpose of the investments, but SOCAR is involved in several major projects including the construction of a shipyard near Baku, the drilling of a second well at the Umid field and the construction of oil refineries in Turkey, Kyrgyzstan and Azerbaijan. Moody’s has given a provisional Ba1 rating to the SOCAR bond issue, and Fitch Ratings a BBB-(exp). The issue falls under the US Securities Act’s Regulation S, SOCAR said.


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