SOCAR Türkiye has secured $1.6 billion in five-year financing from a group of international banks to refinance existing loans on improved terms.
First Abu Dhabi Bank and Mizuho Bank led the transaction, which involved 22 banks from Europe, the Middle East and the Far East, according to Vesti Baku.
SOFR Plus 230 Basis Points
The financing was issued under a corporate guarantee from Azerbaijan’s state energy company SOCAR and carries an annual interest rate of the Secured Overnight Financing Rate, or SOFR, plus 230 basis points.
SOCAR Türkiye said the new facility carries a lower borrowing cost than its previous obligations and comparable market transactions. The old pricing was not disclosed, so the size of the saving cannot be independently calculated.
Bank commitments reached 1.8 times the amount requested. The funds are not earmarked for a new project; they will replace existing loans and optimize the company’s debt structure.
SOCAR President and SOCAR Türkiye board chairman Rovshan Najaf said the transaction would support the group’s liquidity. Vinson & Elkins RLLP and Omni Law Firm served as legal advisers.
The loan’s amount, maturity, pricing and lender participation were also reported by Dealroom and Fineco.
Source: Vesti Baku.