SOCAR intends to diversify its financing channels (UPDATE)

Business Materials 16 September 2016 13:27 (UTC +04:00)
Azerbaijan’s state oil company SOCAR intends to diversify its financing channels.

Details added (first version posted on 12:30)

Baku, Azerbaijan, Sept.16

By Maksim Tsurkov - Trend:

Azerbaijan’s state oil company SOCAR intends to diversify its financing channels, the company’s president Rovnag Abdullayev said Sept.16.

He made the remarks during the presentation of SOCAR bonds for Azerbaijani citizens.

Abdullayev pointed out that SOCAR is implementing a new strategy to strengthen its positions at the international level.

Eurobonds have been issued successfully, he said, adding that issuing bonds on the domestic market is an important step for diversifying financing channels and creating investment opportunities for the population.

SOCAR president pointed out that bonds can be obtained only by Azerbaijani citizens and local companies. SOCAR, for its part, guarantees the liquidity of the issued securities and the possibility of selling them at any time, he added.

Moreover, foreign individuals and legal entities can buy bonds from their owners on the secondary market, said Abdullayev.

He noted that by issuing bonds, SOCAR creates new financing mechanisms for the country’s economy.

Abdullayev noted that issuing of SOCAR bonds in the country won’t lead to an increase in the volume of funds attracted from outside, as the funds from selling these securities will be used for diversification of the company’s financial portfolio.

“Part of the funds attracted as a result of issuing dollar bonds will be used to repay part of the company’s external debt,” added the company’s president.

He said that SOCAR doesn’t plan to offer its shares at IPO.

The nominal value of each bond is $1,000.

The annual bond yield is 5 percent. Applications for buying bonds will be received from Sept.20 to Oct.10, 2016.

The placement will be held at Baku Stock Exchange Oct.13-14, 2016.

Interest income is not taxable and will be paid quarterly. The bonds will be sold from the centers of ASAN Service #1 and #5. The population will be able to get the interest income in the International Bank of Azerbaijan, Kapital Bank, Rabitabank and Xalq Bank. Market maker services will be rendered by AzFinance, InvestAZ, PASHA Capital and PSG Capital investment companies.


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