The agency has assigned a preliminary rating of Ba1, "stable" outlook, the statement said.
"SOCAR will spend the proceeds from the Eurobond placement for the general corporate purposes, which include the refinancing of the existing debt, transaction financing, mining and processing operations," the statement said.
Ba1 preliminary rating, assigned by the agency, corresponds to the corporate rating and reflects its equality with the company`s other debt obligations in SOCAR’s total capital structure.
The third issue of SOCAR’s Eurobonds will be organized by Deutsche Bank and JP Morgan.
It was earlier reported that road-show will be held in mid. March. SOCAR prepares to hold negotiations with investors. The issue is expected to be held by late March.
SOCAR has already implemented two issues of Eurobonds. SOCAR`s Eurobond debut issue to the amount of $500 million with a yield of 5.45 percent per annum was made in February 2012. The maturity date of the primary Eurobond issue was set at February 9, 2017.
On March 11, 2013, SOCAR implemented its second issue of Eurobonds to the amount of $1 billion for 10 years with a yield of 4.75 percent per annum on the CEEMEA market (Central and Eastern Europe, the Middle East, Africa). The demand for them was three times more than the volume.
The debut sovereign Eurobonds with an interest rate of five percent and the loan repayment in 2024 were placed in the amount of $1.250 billion on March 10.
The second issue of SOCAR’s Eurobonds occurred with the help of Deutsche Bank with a yield of 4.75 percent. At present, the interest rate on the bonds is 5.8 percent per annum.
More than $3 billion have been already drawn due to this transaction.
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