Moody`s believes that SOCAR’s purchase of Euro bonds in equivalent of USD 500 mln will not affect the company’s credit portfolio.
SOCAR declared purchase of euro bonds for which it needs to pay USD 500 mln by the end of 2017. The rate of return will be 2 % in relation to the nominal terms.
The offer will be in place by January 26 and “Deutsce Bank” has been chosen to be the manager of the deal.
Moody’s report says that SOCAR has strong liquidity with approximately USD 2.7 bln in cash, 89% of which is in foreign currency as of June 30 2015. It’s foreign debt was USD 8.2 bln, 91% of which is in foreign currency.
