Azmeco (Azerbaijan Methanol Company LLC), a leading private sector petrochemical company based in Azerbaijan, has announced the intention to place a US$1 billion bond issue, which will be traded on the London Stock Exchange.
"After 11 months of solid work, I am happy to announce that our team have finalised in principal agreements with international institutions for the refinancing of Azerbaijan Methanol Company LLC. The proceeds will be used for the continued growth of the business and to repay the outstanding loan from the International Bank of Azerbaijan,” announced Nasib Piriyev, the CEO of the Group.
"Local financial support was crucial to our success, providing initial start up and development capital for the Azmeco project. Now that we have created a proven, profitable and sustainable business, we believe we should become independent of national support, this allows capital to be freed up for other national projects in Azerbaijan.”
"During this challenging time for our economy, I am proud that we are able to obtain this international support for Azmeco. This is a vote of confidence for Azmeco and the company will continue to contribute to the economic development of our country in the future," Piriyev concluded.
Azmeco successfully completed the commissioning and ramp up period, and has a long term agreement in place with BP plc to offtake and market the methanol produced. This included direct and indirect employment of many people and businesses throughout Azerbaijan and the region. During the initial six months of the agreement, from September 2014 to March 2015, BP has purchased 130 000 t of methanol and is committed to growing this activity in the region for years to come.
Speaking about the successful offtake and marketing agreement, a spokesperson for BP said: “We have seen reliable and consistent production from the Azmeco plant from the start of production and throughout our agreement. We see this agreement as part of our overall commitment to Azerbaijan and the region, where we have been working closely with local teams for over 20 years. We aspire to be a valued, trusted, and long term partner in the development of the country’s hydrocarbon resources.”
“Azmeco’s sound commercial and CSR record, successfully illustrates its commitment to the communities where it operates. Economic, social and environmental sustainability has been achieved through its education and sports scholarships, international festivals showcasing Azerbaijan’s rich cultural heritage and a sound record of corporate governance, transparency and environmental conduct,” said Rubin Weston, a partner of Baker Botts, the legal advisors in the transaction.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/13052015/azerbaijan-methanol-company-announces-us1-billion-bond-issue-764/