Socar to Pay for Exxon’s Swiss Unit With Eurobond Proceeds

State Oil Co. of Azerbaijan, or Socar, will pay for Exxon Mobil Corp. (XOM)’s Swiss unit with $200 million out of the $500 million raised in Eurobonds last month.

Socar will use the assets of Esso Schweiz to help pay off debt, Vice President for Economic Affairs Suleyman Qasimov said by e-mail today. He gave no further details.

Of the $500 million received from the Eurobond sale, $133 million will be used to buy a 10 percent share in Turkey’s Petkim Petrokimya Holding AS (PETKM), private Azeri news agency Trend said yesterday, citing an unnamed Socar official.

The remaining $166 million will be used to repay some of Socar’s foreign debts, including $133 million to BNP Paribas and $33 million to Yapi Kredi Bank, the official said, according to Trend.

To contact the reporter on this story: Zulfugar Agayev in Baku at zagayev@bloomberg.net

To contact the editor responsible for this story: Hellmuth Tromm at htromm@bloomberg.net

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