Azerbaijan’s state-owned oil company Socar borrows $175M to refinance
EBRD loan

Last Update: 5:44 AM ET Nov 22, 2006

BAKU, Azerbaijan (MarketWatch) — Azerbaijani state-owned oil company Socar
has organized a $175 million loan from ABN Amro (ABN) and Societe Generale SA
(13080.FR), the company said Wednesday.

The funds will be used to refinance a $170 million loan from the European
Bank of Reconstruction and Development taken out in 2004, the company said.
The funds were originally borrowed to pay for the development of the Shah
Deniz offshore gas field in Azerbaijan’s section of the Caspian Sea, and for
the construction of the South Caucasus gas pipeline from Azerbaijan to Turkey.
SOCAR holds a 10% stake in the Shah Deniz gas development.

The new loan facility carries an annual interest rate of 0.85% above Libor,
while the EBRD loan had a rate of 4% above Libor, the company said.
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