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SOCAR holds placement of Eurobonds in amount of $1 bln

11 March 2013 16:58 (UTC +04:00)

Baku. Ali Ahmedov – APA-Economics. State Oil Company of Azerbaijan has placed Eurobonds in amount of $ 1bln in CEEMEA market for 10 years.

SOCAR says this is the second international transaction to strengthen the company’s investment market.

SOCAR’s first Eurobond placement was held in February, 2012. The amount of those bonds made $500 mln. The new 10-year bonds which were assigned at Ba1/B+/BBB- rating was determined at the price of about 4.90% by Deutsche Bank: “This initial rating was researched later and reduced to 4.80% (+/-5bp). The last limit was determined at 4.75%, which was equal to T+292.2bp”.

The orders to purchase SOCAR’s Eurobonds were three times more than considered. SO, 245 investors ordered Eurobonds in amount of $3 bln. 41% of Eurobonds were purchased by Europe, 32% - by United Kingdom, 25% - by US and 2% - by other investors. Under the types of Eurobonds, 87% were purchased by assets managements, 5% - by banks and retail investors, 4% - hedge funds, 3% - by insurance and pension funds, 1% - by others.