SOCAR Türkiye secures $1.6 billion to refinance existing loans

SOCAR Türkiye, the Turkish subsidiary of the State Oil Company of Azerbaijan (SOCAR), has secured $1.6 billion in five-year financing from international banks to refinance existing loans on more favorable terms.

According to Report, citing SOCAR Türkiye, offers totaled 1.8 times the targeted amount, demonstrating international financial markets' interest in the company.

The transaction was led by First Abu Dhabi Bank (FAB) and Mizuho Bank, with 22 banks from Europe, the Far East and the Middle East participating.

The five-year financing, guaranteed by SOCAR, carries an annual interest rate of SOFR plus 230 basis points. The company said its interest costs are lower than those of its previous loans and comparable transactions in the market.

The transaction's main purpose is to refinance existing financial obligations on more favorable terms. The long-term financing allows SOCAR Türkiye to improve its loan terms and optimize its financial structure without taking on additional obligations.

SOCAR President and SOCAR Türkiye Board Chairman Rovshan Najaf said the strong interest from international banks reflected the company's credibility in global financial markets and confidence in SOCAR Group's financial resilience.

He said the funds raised internationally would support SOCAR Group's liquidity. The transaction also demonstrated financial institutions' support for the company's projects and long-term development prospects.

Vinson & Elkins RLLP and Omni Law Firm acted as legal advisers to SOCAR Türkiye during the refinancing process.