BSTDB increased financing for SOCAR Trading by $25 million

The Black Sea Trade and Development Bank (BSTDB) has provided additional financing of 25 million dollars to SOCAR Trading.

As reported by Report with reference to the BSTDB, the bank approved an additional tranche within the framework of a previously issued loan to SOCAR Trading and signed the corresponding agreement.

It is worth noting that the initial trade financing project of 50 million dollars was approved back in 2019. As a result, the total amount of financing approved by the BSTDB in favor of SOCAR Trading reached 75 million US dollars.

This project has the potential to fulfill the regional cooperation mandate enshrined in the BSTDB's Medium-Term Strategy and Business Plan for 2019-2022, through the expansion of trade flows between Russia and Turkey, as well as indirect support for strategic development objectives by ensuring supplies for a new oil refinery on the territory of Turkey.

The operation involves financing advance payments by SOCAR Trading and post-shipment export financing of crude oil and petroleum products from Azerbaijan and Russia. The funds are directed toward supplies for the new STAR oil refinery in Izmir, as well as toward international markets for Caspian crude oil via the Baku-Tbilisi-Ceyhan pipeline.

As of the current date, the cumulative portfolio for Azerbaijan (approved by the Board of Directors) amounts to 430.794 million euros, signed agreements total 368.537 million euros, and the volume of disbursed funds stands at 608.035 million euros.