Eurobond issue postpones SOCAR's plans to attract new loans

SOCAR does not yet intend to attract new credit line due to plans to issue Eurobonds, SOCAR Vice President for Economic Affairs Suleyman Gasimov told journalists today.

"All new projects such as building shipyard in Garadag, drilling a second well on the Umid field, construction of new filling stations of SOCAR in Baku and others will be funded from the company’s internal resources," he said.

Gasimov said the company wishes to issue Eurobonds in 2011.
"But it all depends on the capabilities and situation on the world financial markets," he said.

The Royal Bank of Scotland (RBS), City bank and Deutsche bank will act as the organizers of the first issue of SOCAR Eurobonds.

The first issue is expected to reach $ 500 million.

Eurobonds are planned to be issued in Europe and Asia. According to the current practice, U.S. investors can buy them through their offshore offices.

SOCAR prepares for a road show for investors. It prepares a prospectus. A special center was established. The information on the main assets of the company is stored there. SOCAR's lawyers and banks-underwriters will conduct audit.


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