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Management companies buy 93% of SOCAR Eurobonds issue

Business Materials 29 March 2015 18:03 (UTC +04:00)
Management companies bought 93 percent of SOCAR (State Oil Company of Azerbaijan) Eurobonds issue, placed in March 2015
Management companies buy 93% of SOCAR Eurobonds issue

Baku, Azerbaijan, Mar.29

By Maksim Tsurkov - Trend:

Management companies bought 93 percent of SOCAR (State Oil Company of Azerbaijan) Eurobonds issue, placed in March 2015, said the message of SOCAR released Mar.29.

SOCAR has placed 15-year Eurobonds with volume of $750 million with a yield of 6.95 percent.

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.

Management companies bought 93 percent of the issue, banks - 5 percent, pension funds - 2 percent, according to the report.

Geographical location of investors who bought SOCAR Eurobonds is as follows: US - 41 percent, United Kingdom - 39 percent, Continental Europe - 18 percent, other investors - 2 percent.

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.

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Follow the author on Twitter: @MaksimTsurkov

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