SOCAR Türkiye Secures USD 1.6 Billion in Refinancing
SOCAR Türkiye has secured USD 1.6 billion in long-term financing, led by First Abu Dhabi Bank PJSC and Mizuho Bank, to refinance its existing liabilities. Completed amid ongoing global uncertainty, this high-value transaction once again demonstrates the company’s strong position in international markets.
SOCAR Türkiye, a subsidiary of the State Oil Company of the Republic of Azerbaijan (SOCAR), has completed a USD 1.6 billion refinancing transaction on favorable terms, led by two of the world’s leading banks, First Abu Dhabi Bank PJSC and Mizuho Bank.
Carried out amid continued concerns over the global economy, the refinancing transaction stands out for its extended repayment term and lower interest cost compared with similar transactions in the market and previous loans. Secured through a syndicated facility involving 22 banks from Europe, the Far East and the Middle East, the transaction does not create any additional obligations for SOCAR. Guaranteed by SOCAR, the financing has a five-year maturity and carries an interest rate of SOFR + 230 basis points per annum.
The transaction attracted demand equivalent to 1.8 times the targeted financing amount, serving as a tangible indication of the confidence in the strong financial standing of SOCAR and SOCAR Türkiye, as well as their solid position in international financial markets.
"A TESTAMENT TO THE STRONG CONFIDENCE IN SOCAR AND TÜRKİYE”
Commenting on the refinancing transaction, Rovshan Najaf, President of SOCAR and Chairman of the Board of Directors of SOCAR Türkiye, stated: “Securing a refinancing facility of this scale on favorable terms, led by major global financial institutions FAB and Mizuho, demonstrates the strong confidence in SOCAR Türkiye at a time when uncertainty continues to prevail in global markets. This financing obtained from international sources strengthens the liquidity of the SOCAR Group while also demonstrating that our projects are supported by financial institutions.”
Vinson & Elkins RLLP and Omni Law Firm served as legal advisers to SOCAR Türkiye in this transaction