Issuing of bonds of Azerbaijan’s state oil company SOCAR within the country will make it possible to diversify the company’s portfolio, SOCAR vice-president for economic issues Suleyman Gasimov said.
“Additional financing within the country creates an opportunity to attract funds on more favorable conditions. SOCAR will earn money from issuing these bonds, probably not directly, but by opening a new channel of financing”, he added.
Gasimov noted that taking into the supply on the domestic financial market, the 5% profit per annum from the funds invested in dollars looked very impressive.
“The bonds on the primary market will be sold only to Azerbaijani citizens. SOCAR refuses from buy-out and repurchase of bonds. That’s to say, SOCAR won’t be able to make buyers return the bonds till expiration of their circulation period and buyers will be able to get profit until its expiration”, he added.
Gasimov noted that jointly with its partners, SOCAR has attracted funds to implement projects in Azerbaijan and abroad in recent years.
A major part of these projects will be completed in coming years and will bring income.
“For example, Star refinery in Turkey, Petkim container terminal, carbamide plant in Sumgait. Income from the implementation of the SOCAR Polymer project is expected in the amount of $10-11 billion”, said Gasimov. “Petkim’s revenues in Turkey are growing from year to year”.
“In total, $40 billion will be invested in our biggest project – Shah Deniz 2 and the Southern Gas Corridor”, he added. “A certain part of the amount accounted for SOCAR and the rest of the financing will be attracted from abroad. However, all investments will be returned during the operation period”.
All companies – partners of SOCAR were attracting funds for the project, said the vice president.
SOCAR has already provided most of the funds, which accounted for its share, and there are enough suggestions to provide the remaining part, he added.
Gasimov noted also that $100 million received from the sale of bonds would replace a small part of external liabilities with domestic liabilities.
“Thus, the interest paid to foreign investors, will be paid to Azerbaijani citizens, who will spend it in the country that will lead to a gain of our economy as a whole,” he added. (Trend/Business World Magazine)
