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Overview

Bank of China contributes to $1.3 billion syndicated term loan with SOCAR Turkey Enerji A.S. for debt refinancing purposes

Commitments (Constant USD, 2023)$199,797,354
Commitment Year•2021Country of Activity•TurkeyDirect Recipient Country of Incorporation•TurkeySector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Aug 1, 2021
Last repayment (originally scheduled)
Jul 31, 2026

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Akbank T.A.Ş.
  • Citigroup Inc.
  • Goldman Sachs International Bank
  • JP Morgan
  • Mitsubishi UFJ Financial Group

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • SOCAR TURKEY Enerji A.S.

Loan description

Bank of China contribution to $1.3 billion syndicated term loan for debt refinancing purposes

Interest type•UnknownMaturity•5 years

Narrative

Full Description

Project narrative

In August 2021, SOCAR Turkey Enerji A.S. (STEAS) — a Turkish subsidiary of the State Oil Company of the Azerbaijan Republic (SOCAR) — signed a $1.3 billion syndicated term loan facility agreement with Citi, JP Morgan, Akbank T.A.Ş., Mitsubishi UFJ Financial Group (MUFG), Bank of China, and Goldman Sachs International (GSI) for debt refinancing purposes. The loan carried a 5-year maturity and an unknown interest rate.

Staff comments

1. The monetary value of Bank of China's contribution to the syndicated loan is unknown. For the time being, AidData assumes equal contributions ($216,666,666) across the six known participants in the syndicate. 2. Together with the repayment of the loan, the deal involved the acquisition of shares in STEAŞ from Goldman Sachs International (GSI) by another subsidiary of SOCAR, a British Virgin Islands (BVI) company called Sermaye Investments Limited, with the intention of the group refinancing its indebtedness with new debt of $1.3 billion from a portfolio of secured lenders. 3. One source indicates that the syndicated term loan facility consists of a $825 million tranche and an EUR 401 million tranche. This issue warrants further investigation.