SOCAR’s capital investments to exceed one billion manat in 2010
Azerbaijan, Baku, Sept.20 /Trend, E.Ismayilov, N.Ismayilov/
The State Oil Company of Azerbaijan (SOCAR) intends to repay the debts on capital investment through loans in 2010, SOCAR's Vice-President for Economic Affairs, Suleyman Gasimov said.
"According to preliminary data, the deficit totaled about 800 million manat. SOCAR needs these funds for reconstruction and modernization of gas transportation and distribution system in the country, expansion of underground gas storage facilities, gas compressor stations, reconstruction and gasification of Baku city and regions in the country," Gasimov said.
By late 2010, company loans will total about $550 million. However, loans to the amount of $90 million for modernization and reconstruction of the Azerkimiya enterprise will be attracted separately.
"At present, talks with Societe Generale are underway. Dutch ING has also expressed interest," Gasimov said.
He said that during six months SOCAR attracted loans worth $350 million, about $100 million of which were from the French bank BNP Paribas, $ 50 million from the U.S. Natexis Bank, $100 million from Turkey's Yapi Kredi Banki. SOCAR's capital investments in the current year will exceed one billion manat, Gasimov said
SOCAR's total credit debt is about $1.5 billion. The majority is made up of 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). Credit was received from the Central Bank at a rate of three percent a year 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 official exchange rate for Sept. 20 is 0.8033 manat to $1.