SOCAR Turkiye attracted $1.6 billion from international banks for loan refinancing

The subsidiary structure of the State Oil Company of Azerbaijan (SOCAR) - SOCAR Turkiye has attracted $1.6 billion in long-term financing from international banks to refinance existing financial obligations on more favorable terms.

As reported by SOCAR Turkiye, demand for the deal exceeded the target volume by 1.8 times, indicating strong interest from international financial institutions in the company. The deal, arranged under the leadership of First Abu Dhabi Bank (FAB) and Mizuho Bank, involved 22 banks from Europe, the Far East, and the Middle East.

The financing was provided for a five-year term under a SOCAR guarantee at an interest rate of SOFR + 230 basis points per annum.

According to the company's information, the cost of the new financing was lower compared to previous loans and similar market transactions. The operation will allow SOCAR Turkiye to optimize its liability structure, improve borrowing terms, and support liquidity without taking on additional obligations.

SOCAR President and Chairman of the Board of Directors of SOCAR Turkiye Rovshan Najaf noted that the high demand for the deal confirms the confidence of international financial markets in the company and the financial stability of the SOCAR group.

According to him, raising funds amid ongoing uncertainty in the global economy also demonstrates the support of international financial institutions for the company's projects.

Vinson & Elkins RLLP and Omni Law Firm served as legal advisors to SOCAR Turkiye in this transaction.