BSTDB increases SOCAR Trading funding by $25M

The Black Sea Trade and Development Bank (BSTDB) has provided additional financing of $25 million to SOCAR Trading, Report informs referring to the BSTDB.

The bank approved an additional tranche of the previously issued loan to SOCAR Trading and signed the corresponding agreement.

The initial $50 million trade finance project was approved in 2019. This brings the total amount of financing approved by the BSTDB for SOCAR Trading to $75 million.

This project has the potential to fulfill the regional cooperation mandate enshrined in the BSTDB Medium-Term Strategy and Business Plan for 2019-2022 by increasing trade flows between Russia and Türkiye, as well as indirectly supporting strategic development goals by securing supplies for a new oil refinery in Türkiye.

The transaction involves financing advance payments to SOCAR Trading and export financing upon the shipment of crude oil and petroleum products from Azerbaijan and Russia. The funds are being used to supply the new STAR refinery in Izmir, as well as to international markets for Caspian crude oil via the Baku-Tbilisi-Ceyhan pipeline.

Currently, the total portfolio for Azerbaijan (approved by the Board of Directors) amounts to 430.794 million euros, with signed agreements amounting to 368.537 million euros, and disbursements amounting to 608.035 million euros.