IFC ready to approve funding for $300 million for SOCAR refinery construction in Turkey

 IFC ready to approve funding for $300 million for SOCAR refinery construction in Turkey
# 03 July 2013 07:53 (UTC +04:00)

According to APA-Economics, the IFC informs that already on 12 August Corporation’s Board of Directors plans to approve the funding for the construction of this refinery - STAR Rafineri A.S.

“The total project cost is estimated at US $5.3 billion. The proposed investment is up to a $150 million. A loan for IFC’s own account and up to a $150 million syndicated B loan,” it was reported.

With the organization of financing of $300 million, the IFC can become a leader among project financing development agencies.

Refinery’s capacity will reach 214,000 barrels of oil per day. It is expected that it will be able to replace import of diesel by Turkey (45% of plant’s capacity) and air fuel (15%). Another 15-20% of the production will be designed for Petkim Holding.

STAR is now 81.5% owned by SOCAR Turkey Enerji A.S. (100% subsidiary of State Oil Company of Azerbaijan Republic (SOCAR) and 18.5% owned by TURCAS Rafineri Yatirimlari A.S (99.6% subsidiary of Turcas Petrol A.S. (Turcas).

On 22 June in Baku the Board of Directors of Black Sea Trade and Development Bank approved allocation of a $58 million loan for this project which may be granted for a period of 18 years.

The BSTDB became the second international financial institution, after the European Bank for Reconstruction and Development (EBRD), which opened the financing of the project for $150 million. Construction of Star oil refinery in the port of Aliaga Star will be financed by the State Oil Fund of Azerbaijan, international financial institutions and commercial banks.

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