SOCAR Türkiye secures $1.6 billion refinancing from international banks

SOCAR Türkiye, the Türkiye-based subsidiary of Azerbaijan State Oil Company (SOCAR), has raised a five-year, $1.6 billion loan from international banks to refinance its earlier credit facilities on more favourable terms. According to Report, citing SOCAR Türkiye, the deal drew offers 1.8 times the planned amount, reflecting strong interest from international financial markets.

The financing was led by First Abu Dhabi Bank (FAB) and Mizuho Bank, with 22 banks in total from Europe, the Far East and the Middle East taking part. The facility is backed by a SOCAR guarantee and priced at an annual SOFR plus 230 basis points. The company said its interest costs are lower than those of earlier loans and similar transactions in the market.

SOCAR President and Chairman of the Board of SOCAR Türkiye Rovshan Najaf said the banks' high interest reflects the company's credibility in global financial markets and confidence in the financial sustainability of the SOCAR Group. The funds will support the group's liquidity. Vinson & Elkins RLLP and Omni Law Firm acted as legal advisers on the refinancing.