FT: Azerbaijan’s Star rising in Turkey

Turkey and Azerbaijan have further cemented their close relations with the signing of a $3.29bn credit agreement for the Turkish subsidiary of Azeri state oil company Socar, for the construction of a 10bn tonnes a year oil refinery to be constructed at Aliaga on Turkey’s Aegean coast.

The credit package, formally agreed on Friday, is both the largest single project finance agreement in Turkish history and, at 18 years, the deal with the longest maturity to date.

It is also the most diverse, involving no fewer than 23 international financial institutions, including Santander, BNP Paribas, Deutsche Bank, Unicredit and Société Générale as well as the Exim banks of the US, Japan, Canada, Spain and Italy.

Socar will contribute a further $2.4bn to the $5.69bn project, of which around $800m has already been invested.
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