TODAY.AZ / Business

SOCAR borrows $175M to refinance EBRD loan

22 November 2006 [15:15] - TODAY.AZ
Azerbaijani state-owned oil company SOCAR has organized a $175 million loan from ABN Amro (ABN) and Societe Generale SA (13080.FR), the company said Wednesday.

The funds will be used to refinance a $170 million loan from the European Bank of Reconstruction and Development taken out in 2004, the company said.

The funds were originally borrowed to pay for the development of the Shah Deniz offshore gas field in Azerbaijan's section of the Caspian Sea, and for the construction of the South Caucasus gas pipeline from Azerbaijan to Turkey. SOCAR holds a 10% stake in the Shah Deniz gas development.

The new loan facility carries an annual interest rate of 0.85% above Libor, while the EBRD loan had a rate of 4% above Libor, the company said. MarketWatch

URL: http://www.today.az/news/business/32918.html

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