Financed ProjectsSOCAR Türkiye

Identification Code:

OP/15/0034

Total Operation Cost:

1.300.000.000

Maturity:

72 months

Operation Status:

Description and Purpose of the Operation:

Goldman Sachs (GS) and JPMorgan (JPM) have jointly structured a transaction in which GS subscribed for newly issued ordinary shares (Shares) corresponding to 13% of the total issued share capital of SOCAR Turkey Enerji A.S. (STEAS), a subsidiary of the State Oil Company of the Azerbaijan Republic (SOCAR), for a total consideration of USD 1.3 billion while simultaneously entering into six year put option transactions with each of STEAS and Sermaye Investments Limited (SIL), a subsidiary of SOCAR full details of the structure of transaction can be found at http://www.socar.com.tr/press/. As part of the transaction, GS and JPM have arranged a credit-linked loan through which GS will secure its rights in respect of the shares and the put options in favour of end investors in that loan. BSTDB is considering becoming a lender as part of the syndicate under that loan, along with other lenders.

Countries of Operation:

Türkiye (100,00 %)

Financial Product:

Loans

Sector:

Energy

Domain:

Public

Borrower/Client:

Borrower SPV

Co-Financiers/Participants:

Goldman Sachs, JPMorgan

Guarantors/Sponsors:

N/A

Developmental and Regional Cooperation Impact:

BSTDB believes that the transaction is expected to support STEAS's long- term strategy of becoming a fully-integrated downstream oil and gas company in Turkey by taking advantage of the country's strategic position and significant market growth potential. STEAS and its subsidiaries are involved in the TANAP pipeline (the "TANAP Project"), a significant investment that BSTDB believes will have a large and very positive developmental and regional cooperation impact in the BSEC Region, in view of the number of benefiting BSEC Member Countries.

Environmental Classification and Impact (summary):

In line with the Bank's Environmental and Social (E&S) Policy the TANAP Project has been screened as a category A project. As a greenfield Category A project the TANAP Project could potentially generate significant adverse E&S risks and impacts, which may be diverse, irreversible, or unprecedented, and according to the Environmental Impact Assessment (EIA) Regulation in effect in Turkey, and BSTDB's compliance requirements, a comprehensive ESIA study needs to be carried out before any construction can begin, or financing decision taken. A Category A development also requires meaningful consultations with the potentially affected stakeholders, and needs to include procedures for public notification, disclosure of related information and the potential E&S risks, public review and comment. The information regarding the TANAP Project is available here http://www.tanap.com/reference-documents/ For direct enquiries please contact: TANAP Natural Gas Transmission Company Address: Kizilirmak Mah. Ufuk Universitesi Caddesi Farilya Is Merkezi No: 8/18 Kat: 2, Cukurambar CANKAYA / ANKARA Phone: 0312 999 11 11 Fax: 0312 287 11 10 TANAP Land Acquisition Directorate of BOTAS Address: Bestepe Mah. Nergis Sokak No: 7, Kat: 23, VIA Tower SOGUTOZU / ANKARA Phone: 0312 902 90 90 Fax: 0312 902 90 99

Operation Leader:

Energy & Infrastructure

E-mail:

ei@bstdb.org