SOCAR sets benchmark yield on dollar bonds
Baku, Azerbaijan, Mar.12
By Maksim Tsurkov - Trend:
SOCAR (State Oil Company of Azerbaijan) has completed a roadshow on dollar bonds, by setting a benchmark yield for 15 years, Global Capital agency said March 12.
Half of the proceeds from the bond issue will be spent on the construction of "Star" refinery in Turkey and the remaining funds will be used to refinance the company's short-term debt and for general corporate purposes, the statement says.
Deutsche Bank and JP Morgan were chosen as managers. The issue volume will be $1 billion.
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.
Edited by CN
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