Azerbaijan Methanol Company LLC (Azmeco), one of the leading private petrochemical companies in Azerbaijan, announced on Wednesday it was going to raise $1bn through bonds issue in London. Highgrove Securities LLP, the company's financial adviser says securities will be offered to investors in a private placement but might be traded publicly at London Stock Exchange in the future.
Azmeco is the biggest methanol producer in the region. Its major plant with 700 thousand metric tonnes capacity was commissioned in 2014 and is now supplying methanol to customers in Azerbaijan, Turkey and the rest of the world, including 180,000 tonnes a year marketed globally by BP Chemicals.
Nasib Piriyev, Azmeco's CEO said: "We have now finalised our agreements with international investors for refinancing the capital of Azerbaijan Methanol Company LLC. The amount raised in London will be used to support continuing growth of the business and repay our outstanding loan from the International Bank of Azerbaijan (IBA).
"Support by the state-backed IBA was crucial to our success providing us with access to capital for the project at the early stages. Now, as it has become a mature and profitable business, Azmeco can be financed privately so IBA's funds could to be freed up for other projects in Azerbaijan to boost the country's economic growth," he added.
Speaking about the successful off-take 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 twenty years. We aspire to be a valued, trusted, and long-term partner in the development of the country's hydrocarbon resources."
Rubin Weston, a partner of Baker Botts, the legal advisors in the transaction, said: "Azmeco's sound operational and CSR records successfully illustrate 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."
Founded in 2007, Azmeco has been a leading private energy group in Azerbaijan, creating thousands of jobs and contributing substantively to the national economy.
(PRNewswire)
www.ann.az
Follow us !
