Azerbaijan, Baku, June 3 / Trend S. Aliyev /
SOCAR's total credit debt is about $1,5 billion, SOCAR deputy president on economic affairs Suleyman Gasimov said.
"This is the maximal amount that SOCAR can attract. Exceeding can lead to default of the company," he said.
The major amount of the funds falls to the debt on loans obtained from the International Bank of Azerbaijan (IBA) and the Central Bank of Azerbaijan (CBA). A loan was received from CBA in September last year worth 750 million manat (about $933 million). A credit was received from the Central Bank at a rate of three percent per annum for seven years, two years of which are subsidized. During this period, only the interest will be paid, and the main amount worth 150 million manat per year will be paid in the next five years.
The rest part of the debt falls to the French bank BNP Paribas - $ 100 million, U.S. Best Bank - 50 million, Natexis Bank - 30 million.
It is planned to get $ 80 million from the German Deutsche Bank one of these days, Gasimov said.
"Loans, drawn from SOCAR, are spent to finance projects, including measures for the rehabilitation and reconstruction of infrastructure," SOCAR vice-president said.
Since 2010 SOCAR began repayment of external loans. About $ 420 million will be returned.
The agreement for a syndicated loan to Azerbaijan ACG Ltd, fully owned by SOCAR in the agreement such as PSA for block of offshore Azeri-Chirag-Gunashli fields in Azerbaijani sector of the Caspian Sea, was signed with the French bank BNP Paribas SA March 24, 2006.
The loan amount was $ 750 million. The role of BNP Paribas was to give a loan, then distribute it among participants of syndication, which included about 15 leading international and European banks.
Due to the syndicated loan, SOCAR (AzACG Ltd) was to regain the costly oil, which it can now sell independently. Previously, the share of SOCAR was funded by ExxonMobil and TPAO, drawn to finance SOCAR's obligations on PSA in 1994.
The agreement with BNP Paribas SA, concluded without governmental guarantees or other collateral, allowed SOCAR to raise funds independently from global capital markets at acceptable rates.
Loans have been drawn from local banks (IBA and Xalq Bank) to lay the underground pipeline through the seabed.