Azerbaijan (ACG) Limited and SOCAR

SOCAR wished to refinance loans provided by ExxonMobil and Turkish State Petroleum to fund their capital expenditure commitments to the Azeri-Chriag-Gunashli oilfield development programme and to raise additional funds for future capex commitments.

Repayment of these loans will enable them to regain control over their full oil entitlement and achieve substantial cost savings.

A syndicated loan financing, secured on oil exports, was chosen as the best means to achieve these objectives.

This inaugural transaction in the international financial markets by a borrower from Azerbaijan has opened the way to further financings in the future.

Canaccord Genuity jointly advised SOCAR on the choice of underwriting banks, the negotiation of the term sheet with BNP Paribas and on subsequent negotiations with ExxonMobil and Turkish State Petroleum and the EBRD, with whom an intercreditor agreement was required.