SOCAR placed Eurobond issue succesfully

Azerbaijan, Baku, Feb. 3 / Trend /

SOCAR (State Oil Company of Azerbaijan Republic) succesfully placed in London debut Eurobond issue, said on the website of organization.

Eurobond aroused great interest among investors. The total volume of orders submitted by 290 investors totaled 4.6 billion U.S. dollars.

The total amount of issued eurobonds is U.S. $ 500 million. The yield of the Eurobond issue will hit 5.45 per cent per annum. The maturity date of the primary Eurobond issue is set for February 9, 2017. Eurobonds are issued on the basis of the "Regulation S" of the Securities Act the United States.

Eurobonds have been assigned ratings of BBB- by agency Fitch and BA1 by agency Moody's. Long-term corporate rating of SOCAR was defined by Fitch as a BBB-("stable" outlook), by S & P as a BB + ("stable" outlook) and by Moody's BA1 ("stable" outlook.)

According to the press release the issuers are the Royal Bank of Scotland (RBS), Citi Bank, and Deutsche Bank. Nomura International Plc. and Société Générale SA are the managers.

The investors' representative is the Deutsche Trustee Company Limited. The main agent for payments and transfers is Deutsche Bank AG (London Branch).

Eurobonds were placed between the investors of England (46%), Europe (38%), the United States' offshores (12%) and Asia (4%). As a result of placing 63% of the Eurobonds were purchased by equity participants, 16% - by banks, 11% - by insurance companies and pension funds, and 10% - by hedge funds.

SOCAR includes the Azneft production association (the companies producing oil and gas on and offshore), the Azerkimya industrial association (chemical enterprises) and Azerigaz industrial association (gas distribution).

SOCAR is the only producer of oil products in the country (it has two refineries on its balance sheet) and also owns petrol stations in Azerbaijan, Georgia and the Ukraine. SOCAR is co-owner of the largest Turkish petrochemical complex Petkim. The company carries out oil trade in various regions of the world through SOCAR Trading.