SOCAR foreign borrowings become more profitable

Oil&Gas Materials 7 June 2011 17:12 (UTC +04:00)

Azerbaijan, Baku, June 7 / Trend S. Aliyev /

SOCAR's total indebtedness is $1.5 billion, SOCAR Vice President Suleyman Gasimov said.

"The main volume of the drawn funds falls to the debt on the credit of the Central Bank of Azerbaijan (CBA) worth 750 million manat, of which 125 million manat have been already returned," he said. "Other payments on the loan are not expected this year."

The CBA has allocated a loan in September last year.

The loan was obtained at a rate of 3 percent per annum for seven years, two years of which are subsidized.

According to the conditions, only the interest must be paid during this period and 150 million manat per year will be paid along with interest for the next five years.

He said the rest falls to the French bank BNP Paribas - $100 million, U.S. Natexis Bank - $ 75 million, Dutch ING - $ 200 million

"The loans, drawn by SOCAR, are mainly spent to develop own projects," he said. "In particular, $ 80 million were spent to purchase 10 filling stations in Ukraine and two tank farms. But there is very good wholesale in the Ukrainian market, so this project is very effective."

He said $2 million were spent to buy 15 filling stations in Romania and $7 million were invested in their development.

SOCAR has begun to repay foreign loans since 2010.

The official exchange rate is 0.7888 manat to $1.