Azerbaijan's SOCAR plans bond issue to raise PP plant capital

06 May 2013 16:45  [Source: ICIS news]

LONDON (ICIS)--The State Oil Company of the Azerbaijan Republic (SOCAR) will this year turn to the eurobonds market to raise capital for investments including a polypropylene (PP) plant, the company said on Monday.

The state-owned company would within 2013 look to raise $400m (€304m) from eurobond issues for petrochemical projects, including a 550,000 tonne/year PP installation that would be constructed next year at a planned petrochemical industrial park.

A specific investment sum for the PP project could not yet be disclosed, SOCAR said.

The petrochemical industrial park is to be developed by SOCAR subsidiary Azerikimya at Sumgait, a city located by the Caspian Sea about 30km (18 miles) away from capital Baku.

SOCAR wants to see Azerikimya launch both PP and low density polyethylene (LDPE) production at the location before the end of next year, the company said.

Other petrochemical investment projects would be approved in line with plans to boost Azerikimya's ethylene (C2) and propylene (C3) capacities by two to three times, it added.

($1 = €0.76)

By: Will Conroy
+44 20 8652 3214

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