Canadian EDC company is leading loan organizer for SOCAR’s refinery in Turkey (UPDATE)

details added (first version posted at 12:50)

Baku, Azerbaijan, Dec. 12

By Emil Ismayilov, Azad Hasanli - Trend:

"Export Development Canada" (EDC) company has become a leading organizer of a syndicated loan worth $ 3.3 billion allocated by the consortium of banks to implement SOCAR's STAR oil refinery construction project in Turkey, the Canadian company said.

EDC has allocated $ 150 million as part of this transaction, the statement says.

"The successful completion of this transaction testifies to the EDC experience in structuring due to the project financing complexity," the vice president for structure and project finance Sven List said. "It creates conditions for further simplification of trade procedures in Turkey."

"The company will focus on this project at each stage of exploration, drilling and development of SOCAR's supply chain, including infrastructure and transportation," EDC chief representative in Turkey Zenon Woychyshyn said.

"EDC's participation in this transaction allowed establishing constructive relations with SOCAR," he said. "Of course, this will open new opportunities in this area in the future."

Moreover, SOCAR signed loan agreements totaling $3.29 billion with around 23 financial institutions in the Turkish city of Istanbul on June 6, as part of constructing a new Star refinery in Turkey.

As previously reported, around $2.69 billion of the total volume of the loans has been issued for an 18-year period (the grace period is four years) and the remaining $600 million - for a 15-year period with the grace period of four years.

The loan package consists of the funds of export-import banks (Spain, Italy, Japan, U.S. and the Republic of Korea), some 16 foreign trade and investment banks, as well as one local bank.

In accordance with the decree of Azerbaijani President Ilham Aliyev on additional measures to support the participation of the Azerbaijani side in the construction of the Star refinery in Turkey, SOCAR Turkey Yatirim joint-stock company was established with an authorized capital of $1.9 billion (with 40 percent share of the state).

Under the decree, the government's share (40 percent or $760 million) in the joint-stock company will be financed by the State Oil Fund of Azerbaijan.

At present, the share distribution in the project is as follows: 60 percent is owned by Rafineri Holding A.Ş. (100 percent owned by SOCAR Turkey Enerji A.Ş.), which had previously acquired all the remaining 18.5 percent share of Turcas Petrol in the project, and 40 percent belongs to SOCAR.

The total cost of the construction of SOCAR refinery in Turkey exceeds $5 billion.
The refinery is expected to be constructed in the first quarter of 2018.

The annual production of naphtha at the Star factory, used by Petkim petrochemical complex, in which SOCAR has equity participation, will account to 1.66 million metric tons as the main raw material. Currently, more than 80 percent of the needs of Petkim in the naphtha are provided by imports, and with the introduction of a new refinery the dependence on imports will be reduced to zero.

Petkim Petrokimya Holding manufactures plastic packaging, fabric, PVC and detergents being the only Turkish producer of such products. The holding exports a quarter of its products.

---

Emil Ismayilov is Trend Agency's staff journalist, follow him on Twitter: @Emilsmail

Azad Hasanli is Trend Agency's staff journalist, follow him on Twitter: @AzadHasanli

Foundation of apartments to be laid in Iran's Yazd Province
Foundation of apartments to be laid in Iran's Yazd Province
Data of Turkmenistan’s construction sector revealed
Data of Turkmenistan’s construction sector revealed
Azerbaijan's construction sector output to grow till 2026 - expert
Azerbaijan's construction sector output to grow till 2026 - expert
Loading Bars
Latest
OPEC marks increase in Baku-Tbilisi-Ceyhan oil exports
Guaranteed wheat purchasing from farmers in Iran continues
Iran to inaugurate new airport in Kurdistan Province
Iran to build new factory at Amirabad port
OPEC revises up forecasts for Azerbaijan’s liquids supplies in 2021
Azerbaijan reveals number of vaccinated citizens for May 11
Azerbaijan confirms 514 more COVID-19 cases, 1,306 recoveries
Iran reveals COVID-19 data for May 11
Iran’s PMO unveils volume of cargo transportation via Abadan Port
Iran shares unemployment data
Georgia export to Germany increased by 40%
Uzbekistan, Kyrgyzstan eye accelerating implementation of roadmap for industrial co-op
FDA to attract funds to support reforms in Uzbekistan
Uzbek-Chinese JV opens tender for spares for gas pumping units
Iran starts mass production of coronavirus vaccine
Russia boosts steel imports from Turkey
Volume of cargo shipment via Turkish Karabiga port in 1Q2021 revealed
Renewables to account for 90% of total global power capacity increases in 2021-2022
Annual renewable capacity additions reach highest level since 1999
Oil dips as pipeline outage fears ease, India weighs
First batch of Sputnik V vaccine arrived in Azerbaijan just a few days ago, more significant shipments expected later this month - Russian FM
Statements reeking of revanchism, are very dangerous, first of all for Armenian side - President Aliyev
Restriction on movement likely to ease in late May in Georgia
Since end of hostilities, we transferred all prisoners of war - President Aliyev
Azerbaijan shows goodwill in matters related to humanitarian issues - President Aliyev
Post-conflict situation, of course, dictates need for closer contacts at all levels - President Aliyev
Heroization of Nazism in all its forms - unacceptable - Azerbaijan FM
Gaza escalation weighs on shekel
Issue of unblocking transport in region must be prioritized - Azerbaijani FM
Humanitarian issues must be resolved as quickly as possible - Russian FM
Russian FM notes key factor in normalizing situation in Karabakh
Russia highly appreciates work of trilateral group of deputy prime ministers of three countries - Russian FM
Azerbaijan committed to fulfilling its obligations under trilateral agreement - Azerbaijani FM
Nine killed in Kazan school shooting
Second batch of Sputnik V vaccine to be delivered to Azerbaijan by late May - Russian FM
FMs of Azerbaijan, Russia sign plan of consultations for 2021-2022 (PHOTO)
Azerbaijan condemns all terror acts - Azerbaijani FM
Uzbekistan reveals number of vaccinated people
Uzbekistan considers attracting French companies to partake in state assets privatization
Uzbekistan signs memorandum of understanding with French Rothschild & Cie
Uzbekistan reveals numbers of companies with dominant position in market
Uzbekistan taking measures to improve availability of public services
Iran and India trade declines due to COVID-19
Azerbaijani president congratulates Azerbaijani people on Ramadan holiday
Armenian railways are owned by Russian railways, therefore, we are discussing issue mainly with Russian side - President Aliyev
Indian Army sets up 100-bedded hospitals in Faridabad, Chandigarh, Patiala
Indian FY22 growth may slip to 8.2%: Crisil
Twitter Donates $15 Million For COVID-19 Relief In India
President Ilham Aliyev criticizes statements of Canada's, France's MFAs: Let them mind their own business
Startups fight COVID-19: How healthtech startup Meddo is helping tackle the hospital bed crisis
Outpouring of support from US for India, Covid-19 help touches USD half a billion
Zangazur corridor must and will be opened - President Aliyev
PFPA-Musavat duo mobilized all their resources to overthrow Heydar Aliyev in Nakhchivan - President Aliyev
This visit to Nakhchivan has great symbolic meaning - President Aliyev
President Aliyev warns revanchists in Armenia: They shouldn’t play with fire
Military equipment available to Nakhchivan Army today probably superior to equipment of some advanced countries - President Aliyev
Russian FM visits tomb of National Leader Heydar Aliyev
There is no territorial unit called Nagorno-Karabakh in Azerbaijan - President Aliyev
Iran and Serbia plan to develop trade ties
Azerbaijani, Russian delegations holding meeting in expanded composition
Value of exports from Azerbaijan to UK soars
FMs of Azerbaijan, Russia begin one-on-one meeting
Queen Elizabeth to set out UK government's post-pandemic agenda
Uzbek-Chinese JV opens tender for calibration of ultrasonic flowmeters
Australia's Victoria on alert after first COVID-19 case in two months
Central Bank of Azerbaijan makes allocations to support credit register system
Kazakhstan sees increase in trade with Iran despite COVID-19
Kazakhstan boosts exports to Georgia multifold
Turkey reveals 1Q2021 data on cargo movement via local ports from Russia
Baku welcomes UNESCO mission to assess cultural heritage of Karabakh - Azerbaijani MFA
Iranian currency rates for May 11
Kazakhstan’s Intergas Central Asia company opens tender for feasibility study dev't
TAP to open tender for purchase of gas for fuelling compressor stations
UN says Europe needs more efficient mechanisms to handle migrant arrivals
Amazon raises $1 billion sustainable bond for climate
Latest prices for Azerbaijani oil disclosed
Azerbaijan boosts import of coffee, tea
SOCAR’s Petkim extends time of repaying receivables
Central Bank of Azerbaijan releases 1Q2021 net external assets of local commercial banks
Uzbekistan reveals COVID-19 data for May 11
Turkey unveils volume of goods handled through Bandirma port in 1Q2021
Turkey publishes 1Q2021 data on cargo movement via Izmir port
Number of ships received at Turkish Ambarli port in 1Q2021 revealed
Turkey confirms 13,604 new COVID-19 cases
Kyrgyzstan introduces state regulation of prices for vegetable oil and sugar
Immunization Technical Advisers of Georgia hope WHO to authorize Sinovac
Envoy: Iran supports Afghan peace process
TRACECA Permanent Representative talks cargo traffic growth on Azerbaijani section
Over 610 Palestinians injured in clashes with Israeli police in East Jerusalem - newspaper
Some 20 terrorists killed, 4 bases destroyed in Burkina Faso
WHO records over 677,000 new daily cases of COVID-19 worldwide
Italy reports just over 5,000 new COVID-19 cases, 198 deaths
7 rockets fired from Gaza at Jerusalem area: Israeli military
Saudi Arabia to require arriving visitors to quarantine for a week
Oil prices inch higher as traders eye U.S. pipeline shutdown
Palestinians report several killed in Israeli air raids on Gaza
Biden confident he will meet with Putin
Over 1.6mln receive COVID-19 vaccine in Kazakhstan
Azerbaijan's import of cars from Turkey drops
Iran makes advanced industrial flame arrester
All news