Turkish petrochemical complex Petkim plans to place Eurobonds in the amount of $ 500 million on the Irish Stock Exchange. To this end, since January 15 of this year, the management of the holding will participate in a series of meetings of investors in the UK and the US, organized by authorized banks.
Goldman Sachs International and JP Morgan have been empowered as under-raters for the emission process. The bonds will be in circulation until December 22, 2018.
The Turkish Capital Markets Board gave a positive response to the appeal for Petkim’s Eurobond emission, most of which belongs to SOCAR.
Earlier, Petkim signed an agreement on the acquisition of 30 percent of Rafineri Holding from SOCAR Turkey Enerji worth $720 million.
Rafineri Holding owns 59.99 percent of the shares of SOCAR Turkey Yatırım which in turn owns 100 percent of STAR Rafineri shares.
Under the agreement concluded between Petkim and SOCAR Turkey Enerji, Petkim will directly own 18 percent stake in STAR.
The agreement also says that 30 percent of Rafineri Holding will be transferred to new owners on March 31, 2019.
Petkim will pay $720 million in three stages. The first part will be after the signing of the agreement on the acquisition of shares, the second-after the start of the test work for commissioning of STAR refinery, and the third-when the acquired shares will be transferred to the new owners.
SOCAR began its activity in Turkey after privatization of Petkim Holding in 2008 and has been operating under brand name of SOCAR Turkey. The company was acquired by SOCAR as a result of a tender of privatization.
The consolidated turnover of SOCAR Turkey Enerji is expected to reach $15 billion in 2018, and the company will become the second biggest industrial company in Turkey with 5,000 employees and export potential of $3 billion. It sets a goal to become the biggest industrial company of Turkey by 2023.