Azerbaijan, Baku, 11 March / Trend I.Khalilova /
SOCAR has placed Eurobonds in the amount of $1 billion for 10 years on the CEEMEA market (Central & Eastern Europe, Middle East and Africa), according to the statement posted on its website on Monday.
"This is the second international transaction conducted by SOCAR to strengthen its investment base," the statement said.
In early March, Fitch Ratings has assigned SOCAR's proposed USD denominated senior unsecured notes an expected foreign currency senior unsecured rating of 'BBB-(EXP)'.
The final rating is contingent upon the receipt of final documentation conforming materially to information already received and details regarding the notes amount, coupon rate and maturity. The proceeds from the notes issuance are expected to be used to fund the company's capex and other general corporate purposes.
Moody's Investors Service has assigned a provisional (P)Ba1 rating to corporate bonds to be issued by the State Oil Company of the Azerbaijan Republic (SOCAR). The outlook on the rating is stable.
SOCAR placed its debut Eurobond issue worth $500 million in February 2012.
"The mandate for the issue of securities of the company this year was granted at the end of February, and their two-day presentation was held in London on March 4-5," according to the statement.
Initial yield of ten-year bonds (rating at Ba1/BB + / BBB-) was determined within 4.90 percent under the guidance of Deutsche Bank.
"This initial level has been lowered to 4.80 percent, and the final level totals 4.75 percent," the statement said.
Total volume of orders exceeded the volume of Eurobonds by three times. Applications were submitted by 245 investors for a total of $3 billion.
From a geographical point of view, the classification is as follows: 41 percent of Eurobonds issue was purchased by investors from Europe, 32 per cent - from the United Kingdom, 25 percent - from the U.S., two percent - by other investors. By type: 87 percent of Eurobonds were purchased by asset management companies, five percent - by banks and retail investors, four percent - by hedge funds, three percent - by insurance and pension funds, and one per cent - by others.