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SOFAR allocates fund to SOCARâ€™s subsidiary establishment for 13 years

06 July 2011 14:34 (UTC +04:00)

The custodial services of the bond registered by the State Committee for Securities of the Republic of Azerbaijan on July 4, 2011 will be provided by the Central Bank of the Republic of Azerbaijan.

The purchase of the bond was realized in the framework of the â€œMain framework (program) of utilization and management of assets of the State Oil Fund of the Republic of Azerbaijan in 2011â€ approved by the Decree of the President of the Republic of Azerbaijan dated December 28, 2010. According to the program Oil Fund may invest in the securities of oil and gas companies operating in Caspian Sea basin. The issuer or its parent company of these securities should have a long-term investment grade credit rating.

Proceeds obtained from the sale of the bond were utilized for increasing the share of Azerbaijan (ACG) Limited by 1.6461% in the Agreement on the joint development and production sharing for the Azeri and Chirag fields and the deep water portion of the Gunashli field.

The maturity date of the bond is December 31, 2024 and the coupon rate equals to 6-month LIBOR + 1%.