Cost announced of SOCAR development program until 2025
Azerbaijan, Baku, April 10 / Trend E.Ismayilov /
The discrepancies in the estimates of SOCAR's expenditures and income this year will be about $800 million, a senior SOCAR official told reporters on Tuesday.
"Coverage is provided by the funds raised through Eurobonds, and the remainder will depend on the budget and the actual need for funds," he said.
Touching upon the issue of attracting additional investments, he said it can be done if necessary. He also noted that the yield on Eurobonds is not likely to become a reference point for interest rates on new borrowings of the company, because of other demands, and long-established relationship with banks.
On Feb. 2, SOCAR successfully completed placement of debut issues of Eurobonds in London. Eurobond aroused great interest among investors. The total volume of orders submitted by 290 investors totaled $4.6. The total amount of issued eurobonds is $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.
He added that this year the company's capital expenditure is estimated at the level of 1 billion manat.
Concerning the strategic development program until 2025, he said the company conducts its activities in accordance with this program.
"The amount of funds that can be invested in the implementation of the program, is more than 26 billion manat, but it is reviewed annually and adjusted," he said.
The official exchange rate is 0.7862 AZN to $1 on April 10.