Socar Turkey snags benchmark $1.6bn five-year syndicated loan rollover at SOFR+2.30%
Socar Turkey, a unit of Azerbaijan’s state oil company, has closed a $1.6bn syndicated five-year refinancing package under a guarantee provided by its parent Socar, it said on October 19.
The facility was led by First Abu Dhabi (FAB) Bank PJSC (Abu Dhabi/FAB) and Japan’s Mizuho Bank (Tokyo/8411).
Priced at SOFR plus 230 basis points per annum, the refinancing achieves a lower borrowing cost and a longer maturity profile relative to previous credit lines and prevailing market benchmarks, without imposing additional liabilities on the parent entity.
The deal attracted significant interest from international debt markets, drawing participation from 22 commercial banks across Europe, East Asia and the Middle East. Lenders submitted bids amounting to 1.8 times the original target.
“A refinancing of this scale, arranged on favourable terms under the leadership of major global financial institutions like FAB and Mizuho during a period of ongoing global market uncertainty, is a clear sign of deep confidence in Socar Turkey,” said chairman of Socar Turkey, Rovshan Najaf.
Legal counsel on the transaction was provided by Vinson & Elkins RLLP alongside Omni Law Firm.
In 2021, Socar Turkey announced a $1.3bn 5-year syndicated loan at Libor/Euribor +3.45%. Citibank (Citigroup/New York/C) and JPMorgan (New York/JPM) were lead managers.
The new loan suggests a rollover rate of 123%. Given no Euribor benchmark was provided, it could be assumed that the new facility is fully USD-denominated.
In 2014, the company obtained the initial $3.29bn syndicated loan for the construction of the Star Refinery project.
Turkey has two oil refiners. Tupras (Istanbul/TUPRS), a unit of Koc Holding (Istanbul/KCHOL), has an annual production capacity of 30mn tonnes while the other refinery, Star Refinery, launched in 2018 by Socar Turkey, has a capacity of 13mn tonnes/year.
In May 2025, Tupras obtained a 5-year $500mn sustainability-linked syndicated loan at an all-in cost of SOFR plus 2.25%.
In February 2025, Port operator Petlim, a unit of Turkish petrochemical producer Petkim (Istanbul/PETKM), obtained a $140mn three-year loan from JPMorgan at an annual cost of SOFR plus 4.35% under a guarantee provided by its parent company.
Petkim is a unit of Socar Turkey.
In December 2024, Petkim said that it amended a loan agreement with JPMorgan Securities plc regarding a facility that was obtained in 2023.
In 2023, Petkim obtained the $300mn three-year loan in question at the cost of SOFR plus 5.60%.
With the amendment, the outstanding sum was increased by $100mn to $400mn while the maturity was extended to December 2027 and the annual cost was cut to SOFR+3.95%.
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Major foreign loans obtained by Turkish borrowers
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| Total | Renewal | Tranche | Cost | Tranche | Cost | |||
| (mn) | Rate | Maturity | 1 | 1 | 2 | 2 | ||
| Oct-26 | Socar Turkey | $1,600 | 123% | 5-year | SOFR+2.30% | |||
| Mar-26 | Tofas (TOASO) | €276 | new | 8-year | BBVA | Export Credit Agency (ECA) | Euribor+2.25-2.35% | |
| Mar-26 | Akbank (AKBNK) | $700 | 136% | 367-day, 2-year+2-day, 3-year+2-day | $124.85, $202, $102.5 | SOFR+1.25, 1.75, 2.00% | €175.4, €60 | Euribor+1.10%, 1.60% |
| Mar-26 | Turkcell (TCELL) | $1,000 | new | 7-year | 2-year grace | SOFR+2.14% | ||
| Oct-25 | Akbank (AKBNK) | $649 | 114% | 367-day, 2-year+2-day, 3-year+2-day | $152.25, $272, $54.25 | SOFR+1.50, 1.90, 2.15% | €132, €15 | Euribor+1.25, 1.65%, 1.90% |
| Oct-25 | Koc Holding (KCHOL) | $600 | new | 5-year | 2.5-year grace | SOFR+1.95% | ||
| Oct-25 | Turk Telekom (TTKOM) | $250 | ICBC | 4.9-year | Sep 2030 | SOFR+2.56% | ||
| Sep-25 | Turk Telekom (TTKOM) | €120 | 5-year | Sep 2035 | Sinosure | China Eximbank | Euribor+3.24% | |
| Sep-25 | Turk Telekom (TTKOM) | $222 | HSBC | 4.4-year | May 2036 | SOFR+2.37% | Finnvera | |
| Jun-25 | Denizbank | $1,100 | 117% | 367-734-day, 3-year+2-day | $333, $324, $147.5 | SOFR+1.60, 2.00, 2.25% | €194 | Chinese yuan (CNY) 329mn |
| May-25 | Tupras (TUPRS) | $500 | new | 5-year | 2.5-year grace | SOFR+2.25% | ||
| Mar-25 | Turkey Wealth Fund (TWF/TVF) | €1,101 | 139% | 2-year | $285 | SOFR+2.25% | €837 | Euribor+2.00% |
| Dec-24 | Aygaz (AYGAZ) | $20 | 67% | 3-year+2-weeks | SOFR+2.50% | |||
| Dec-24 | Tofas (TOASO) | €295 | new | 8-year | BNP Paribas Fortis | Euribor+2.27-2.37% | Italy Export Credit (SACE) | ING-DIBA AG |
| Dec-24 | Petkim (PETKM) | $400 | 133% | 3-year | JPMorgan (New York/JPM) | SOFR+4.35% | ||
| Nov-24 | QNB Turkey (QNBFB) | $651 | 133% | 367-734-1,101-day | $135-187.8-68 | SOFR+1.75-2.25-2.35% | €106-107.5-34 | Euribor+1.50-2.00-2.10% |
| Jun-24 | Denizbank | $940 | 178% | 367-day | $647 | SOFR+2.50% | €216 | Chinese yuan 255mn |
Table: Benchmark foreign loans obtained by Turkish borrowers.
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