Vice president: Turkish banks ready to finance SOCAR on favorable terms

Oil&Gas Materials 3 May 2013 18:55 (UTC +04:00)

Azerbaijan, Baku, May 3 / Trend, A. Akhundov /

The State Oil Company of Azerbaijan (SOCAR) may use the services of Turkish banks to finance the company's projects in the country, SOCAR Vice President for Economic Affairs Suleyman Gasimov told journalists on Friday.

"Turkish banks assess the risks of our projects and proposed funding at a rate of 4 percent," he said. "If the ratio between their proposals and our income expectations are beneficial to us, then we will use their services."

However, while uniting funding from Turkish EximBank (which offers cheaper credit) with services from a number of commercial banks, the total rate may be less than 4 percent.

A delegation, consisting of representatives of 13 Turkish banks, held several meetings in Baku on March 18. A meeting with heads of Turkish leading banks and financial institutions, such as İş Bankası, Finansbank, Garanti Bankı, Ziraat Bankı, Vakıfbank, TSKB, Yapıkredi, Denizbank, Unikredit, TEB, Akbank and Halkbank, was held at SOCAR.

Only 30 percent of $ 17 billion to be invested in the Turkish economy by SOCAR will be financed by equity. The rest part is planned to be raised from Turkish banks, head of SOCAR Turkey Enerji, a board member of Petkim Petrochemical Holding Kenan Yavuz, said earlier.