SOCAR not hurrying to issue next Eurobonds
Baku, Azerbaijan, Dec. 28
By Emil Ismayilov - Trend:
Azerbaijan's State Oil Company (SOCAR) is preparing for a new issue of Eurobonds with a longer repayment period - 15 years, according to the SOCAR vice president on economic issues, Suleyman Gasimov.
Earlier there was a statement about the issue of bonds with a maturity period of 30 years.
Gasimov said the interest of investors in SOCAR's debt securities rose after the decline of the portfolio of Russian Eurobonds due to Western sanctions.
"Until now, we have placed bonds with a maturity period of five and ten years, now we want to issue Eurobonds for 15 years," Gasimov said. "We have already started some preparatory work, but it does not mean that we will release the debt securities."
He said that in connection with a reduction in oil prices, the yield of Eurobonds on international capital markets has increased, adding that despite this, the investors are showing great interest in SOCAR.
Gasimov noted that the preparation process takes a long time, so it is too early to talk about the timing and amount of the next placement.
"These parameters will depend on the results of the market monitoring and the company's needs in financial resources," Gasimov said.
He added that SOCAR's assets stand at 24.4 billion AZN, which is five times more than the figures eight years ago.
SOCAR has earlier carried out two issues. The first one was in 2012 at $500 million with a yield of 5.45 percent and maturing in Feb. 2017, and the second one took place in March 2013 in the market of the CEEMEA (Central and Eastern Europe, the Middle East, Africa) at $1 billion for a 10-year period with a yield of 4.75 percent.
The demand for both of the issues was three times higher than the amount of emissions.
The debut Eurobond placement at $1.250 billion with an interest rate of five percent and repayment of the loan in 2024 was held on March 10.
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