STAR Rafineri

1/3/2019
Project development, Project finance

$ 5.6 billion

Completed

1/3/2019


Overview:

  • The STAR Rafineri project is a greenfield refinery to be built in the Izmir region of Turkey.
  • It is the first new refinery to be built in in the country since 1972. 
  • It is also the largest ever Turkish project finance deal.
  • The overall cost is $5.6 billion with $3.3 billion provided by Azerbaijan national oil company SOCAR.
  • Additional financing for the project is being provided by export credit agencies from five different countries, Export Development Canada and a group of 16 commercial banks from Europe and Asia. 
  • The project is due to be online by 2018 and will be able to refine 10 million tons of products each year. It has also received the first strategic investment incentive certificate of Turkey.
  • The project is part of $20 billion of investment SOCAR plans to make in Turkey, primarily in the Petkim peninsula.
  • Allen & Overy acted for the joint lead managers on the financing alongside Paksoy as local Turkish counsel.
  • Vinson & Elkins acted for SOCAR and project company STAR Rafineri, with YükselKarkınKüçük Attorney Partnership providing Turkish support alongside Omni Law Firm (Roman Alloyarov) as Azerbaijan counsel.

Jon Moore - Journalist - EMEA

Jurisdictions:

Azerbaijan
Türkiye

Deal types:

Project development
Project finance

Practice areas:

Project finance
Project development

Governing law:

Turkey

Industry sector:

Oil and gas


Firms:

Party: BBVA (Arranger)

Party: Banco Popular Español (Lender, Mandated lead arranger)

Party: Banco Santander (Lender)

Party: The Bank of Tokyo-Mitsubishi UFJ (Facility agent, Mandated lead arranger, Lender)

Party: BNP Paribas (Facility agent, Mandated lead arranger, Lender, Hedging counterparty, Foreign account bank)

Party: BNP Paribas Fortis (Mandated lead arranger, Lender)

Party: Deutsche Bank (Mandated lead arranger, Lender, Original hedging counterparty)

Party: Intesa Sanpaolo (Facility agent, Mandated lead arranger, Lender)

Party: Natixis (Mandated lead arranger, Lender, Original hedging counterparty)

Party: Caixabank (Mandated lead arranger, Lender)

Party: Crédit Agricole Corporate and Investment Bank (Mandated lead arranger, Lender)

Party: KfW IPEX-Bank (Mandated lead arranger, Lender)

Party: Korea Development Bank (Mandated lead arranger, Lender, Original hedging counterparty)

Party: Société Générale (Mandated lead arranger, Lender, Original hedging counterparty)

Party: Unicredit Bank Austria (Mandated lead arranger, Lender, Original hedging counterparty)

Party: Unicredit Bank (Security agent, Intercreditor agent, Original hedging counterparty)

Party: Všeobecná úverová banka (Original hedging counterparty)

Party: Turkiye Garanti Bankasi (Mandated lead arranger, Commercial facility agent, Local account bank, Lender)

Party: ING Bank (Facility agent, Lender, Mandated lead arranger)

Party: Mitsubishi UFJ Securities International (Original hedging counterparty)

Party: Export Development Canada (Lender)

Party: SACE - Servizi Assicurativi del Commercio Estero (Lender)

Party: Japan Bank for International Cooperation (Lender)

Party: US Ex-Im (Lender)

Party: CESCE - Compañía Española de Seguros de Crédito a la Exportación (Lender)

Party: NEXI - Nippon Export and Investment Insurance (Lender)

Party: K-SURE - Korea Trade Insurance Corporation (Lender)


Party: JPMorgan Chase (Lender)


Party: SOCAR (Originator)

Lawyer: Roman Alloyarov


Party: BBVA (Arranger)

Party: Banco Popular Español (Lender, Mandated lead arranger)

Party: Banco Santander (Lender)

Party: The Bank of Tokyo-Mitsubishi UFJ (Facility agent, Mandated lead arranger, Lender)

Party: BNP Paribas (Facility agent, Mandated lead arranger, Lender, Hedging counterparty, Foreign account bank)

Party: BNP Paribas Fortis (Mandated lead arranger, Lender)

Party: Deutsche Bank (Mandated lead arranger, Lender, Original hedging counterparty)

Party: Intesa Sanpaolo (Facility agent, Mandated lead arranger, Lender)

Party: Natixis (Mandated lead arranger, Lender, Original hedging counterparty)

Party: Caixabank (Mandated lead arranger, Lender)

Party: Crédit Agricole Corporate and Investment Bank (Mandated lead arranger, Lender)

Party: KfW IPEX-Bank (Mandated lead arranger, Lender)

Party: Société Générale (Mandated lead arranger, Lender, Original hedging counterparty)

Party: Unicredit Bank Austria (Mandated lead arranger, Lender, Original hedging counterparty)

Party: Unicredit Bank (Security agent, Intercreditor agent, Original hedging counterparty)

Party: Všeobecná úverová banka (Original hedging counterparty)

Party: Turkiye Garanti Bankasi (Mandated lead arranger, Commercial facility agent, Local account bank, Lender)

Party: ING Bank (Facility agent, Lender, Mandated lead arranger)

Party: Mitsubishi UFJ Securities International (Original hedging counterparty)

Party: Korea Development Bank (Mandated lead arranger, Lender, Original hedging counterparty)

Party: Export Development Canada (Lender)

Party: SACE - Servizi Assicurativi del Commercio Estero (Lender)

Party: Japan Bank for International Cooperation (Lender)

Party: US Ex-Im (Lender)

Party: CESCE - Compañía Española de Seguros de Crédito a la Exportación (Lender)

Party: NEXI - Nippon Export and Investment Insurance (Lender)

Party: K-SURE - Korea Trade Insurance Corporation (Lender)


Party: SOCAR (Originator)

Party: STAR Rafineri (Project company)