Socar Holds Talks With European Banks to Borrow $500 Million

State Oil Co. of Azerbaijan is in talks with European banks including BNP Paribas SA, Deutsche Bank AG and Citigroup Inc. to borrow $500 million this year, said Suleyman Qasimov, vice president for economic affairs.

Socar, as the oil and gas producer is known, is also talking with Royal Bank of Scotland Plc, Natixis, UniCredit SpA, Yapi & Kredi Bankasi AS, and VTB Group, Qasimov told reporters today in the capital, Baku.

The funds will be used for projects both in Azerbaijan and abroad, including the Star refinery under construction in Turkey’s Izmir region, Qasimov said.

Socar has about $1.6 billion of foreign debt, which is “quite manageable,” Qasimov said. The Baku-based company sold $500 million of debut Eurobonds last year.