Azernews.Az

Azerbaijani state oil company SOCAR plans to issue corporate bonds worth 500 million manat to be placed on the Azerbaijani securities market in 2013, head of SOCAR Rovnag Abdullayev told journalists, according to Trend news agency.

He said that the bond issue plans appeared in the country after obtaining good results following the placement of Eurobonds.

"The company is the engine of the Azerbaijani economy and the issue of bonds will create the conditions for the revival of the country's securities market," Abdullayev said. "At present work on this project is underway."

He said that the bonds are planned to be issued for five years.

"Everybody, including the population of the country will be able to buy corporate bonds, planned to be issued by SOCAR," he said. "I would like our ordinary citizens to buy these bonds too."

Most of the funds received by SOCAR from the placement of Eurobonds to the amount of $500 million were directed to pay the assets in Switzerland, purchased from Exxon Mobil.

SOCAR signed an agreement with Exxon Mobil to acquire its Swiss branch - Esso Schweiz GmbH in November 2011.

Part of the funds from the placement of Eurobonds to the sum of $133 million, is intended for the purchase of 10 per cent of the state share of the Petkim petrochemical holding.

SOCAR is co-owner of the Petkim petrochemical complex. Previously SOCAR Turkey Enerji, Turkish division of the state oil company, started construction of a new oil refinery in Turkey in order to meet the needs of Petkim in raw materials.

The rest of the proceeds from the Eurobonds worth $166 million focused on the external debt of the company, a senior representative of SOCAR said earlier. In particular, $133 million were used to repay the loan borrowed from BNP Paribas and $33 million to cover the loan from the Yapi Kredit Bank.

SOCAR successfully completed the placement of the debut Eurobond issue in London on February 2. Eurobond aroused great interest among investors. The total volume of orders submitted by 290 investors totalled $4.6 billion.

The total volume of Eurobond issuance amounted to $500 million at a yield of 5.45 per cent per annum. The maturity date of the primary Eurobond is defined as being February 9, 2017.