Harneys advises on US$1.3 billion SOCAR financing

Harneys represented the State Oil Company of Azerbaijan Republic (SOCAR) in connection with a US$1.3 billion put option-based financing for SOCAR Turkey Enerji A.Ş. (STEAS), a subsidiary of SOCAR which was partly structured through offshore special purpose vehicles.

Goldman Sachs and JPMorgan jointly structured the transaction in which Goldman Sachs International subscribed for approximately 890.6 million newly issued ordinary shares in STEAS, corresponding to 13 per cent of the total issued share capital of STEAS, for a total consideration of US$1.3 billion. Goldman Sachs International will simultaneously enter into six year put option transactions with each of STEAS and Sermaye Investments Limited, a BVI incorporated subsidiary of SOCAR, to protect Goldman against a decline in the value of the shares.

The Harneys team included partners Colin Riegels and Tanya Cassie.