Azernews.Az

By Amina Nazarli

Azerbaijan’s state energy giant SOCAR has allocated $120 million loan to Palmali International Holding Co Ltd., according to SOCAR’s consolidated financial report for 2015.

Term of credit expires on December 31, 2021. The loan is allocated under LİBOR + 4.5%. The balance value of the loan cost allocated to Palmali made up 122 million manat (about $78 million) as of December 31, 2015.

In accordance with the agreement on pledge of shares and corporate guarantee, signed between SOCAR and Palmali shareholders on October 7, 2009, the opposing side has laid under the guarantee of implementation of the loan deal 340 from 514 issued shares and the corresponding share of Palmali.

The Palmali Group of Companies is specialized in transporting goods in the Mediterranean, Black and Caspian seas. The company is a general carrier for oil companies, including SOCAR and Russian Lukoil, and has long-term contracts on oil and oil products transportation with other oil companies.

SOCAR is involved in exploring oil and gas fields, producing, processing, and transporting oil, gas, and gas condensate, marketing petroleum and petrochemical products in domestic and international markets, as well as, supplying natural gas to industry and the public in Azerbaijan.

Three production divisions, one oil refinery and one gas processing plant, a deep water platform fabrication yard, two trusts, one institution, and 23 subdivisions are operating as corporate entities under SOCAR.

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Amina Nazarli is AzerNews’ staff journalist, follow her on Twitter: @amina_nazarli

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