Financed ProjectsSOCAR Türkiye II

Identification Code:

OP/19/0010

Total Operation Cost:

1.300.000.000

Maturity:

30 months

Operation Status:

Description and Purpose of the Operation:

The transaction pertains to another BSTDB’s participation in a credit-linked loan for the benefit of SOCAR Turkey Enerji A.S. (STEAS), a wholly owned subsidiary of the State Oil Company of the Azerbaijan Republic (SOCAR). In February 2016 the BSTDB Board approved the Bank’s participation in the transaction in the amount of USD30,000,000 and the Bank subsequently provided the required funding in the course of 2016. For more details about the original transactions please visit: www.bstdb.org/project-center/projects-financed/ProjectID=OP/15/0034

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:

Following the original transaction closed in 2016, the proposed new transaction will further intensify the Bank’s support to 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.

Environmental Classification and Impact (summary):

Category B+. The Operation involves increasing the Bank’s exposure in SOCAR Turkey Enerji through another participation in a structured limited recourse debt financing similar to the one closed in 2016. Due to the nature of the transaction and the fact that SOCAR Turkey was subject to an in-depth environmental and social due diligence (ESDD) process under the previous operation, the scope of the current ESDD is envisaged to be limited to a review of STEAS’ general E&S performance, the applied corporate standards, and a generic review of the major strategic projects which are currently implemented by STEAS. No other due diligence is deemed necessary for the purpose of this operation.

Operation Leader:

Energy & Infrastructure

E-mail:

ei@bstdb.org