SOCAR halts preparations for issuing bonds until September

SOCAR's (State Oil Company of Azerbaijan Republic) entering the securities market will have a strong, stimulating impact, chairman of the State Securities Committee of Azerbaijan Rufat Aslanli told journalists on Friday.

"The State oil company will actually be a blue chip on our stock exchange. In addition these securities will enjoy a very high social importance because in future they will be purchased by the population and this will allow these security holders to receive some benefits from the activities of SOCAR in the form of percentages," Aslanli said.

Referring to the process of issuing the State Oil Company's bonds, Aslanli said SOCAR had been ready to enter the IPO for some time, as well as to sell its securities in Stock Exchange.

"As it is known, for several years, the company has been quoted on the London Stock Exchange. There was not an official appeal to the state committee on issuing corporate bonds, but we are carrying out very intensive consultations and informal discussions on the parameters of issuing the expected profitability and demand. The summer season comes and I think that we will return to this question by September," said Aslanli.

At the end of the previous year the head of SOCAR Rovnag Abdullayev, announced that the company's bonds worth 500 million manats will be issued for placement on the securities market.

He said the bonds are planned to be issues for a period of five years.

The company plans to direct the funds received from the placement of the bonds towards the development of the Umid gas field and to the building of a new drilling rig.

SOCAR plans to carry out the issue of bonds on the inner market of the securities through joint venture SOCAR Umid which was created with the purpose of development of the Umid gas field.

SOCAR has an 80 per cent participation in the joint venture with 20 per cent belonging to Nobel Oil.

The building of a drilling rig which will be carried out by the Caspian Drilling Company and State Oil Fund will be underwritten through placement of azbonds.

Funds are laid aside in the budget of the State Oil Fund for financing the building of the drilling rig.

The Caspian Drilling Company is a service company, 93 per cent of which belongs to SOCAR.


/Trend/