Azerbaijan-based SOCAR Capital, established in 2016, has played a significant role in developing the local capital market infrastructure. The company has successfully expanded the investor base and increased trading volumes on the Baku Stock Exchange.
Some of SOCAR Capital’s notable achievements include improving financial literacy, attracting passive cash funds, enhancing access for Azerbaijani companies to capital markets, and facilitating activities within the corporate bond market in Azerbaijan.
Recently, International Finance named SOCAR Capital as the “Best New Bond for Green Project Financing – Energy – Azerbaijan 2025”.
Upon winning the award, SOCAR Capital CEO Samir Kerimli said, “This achievement reflects SOCAR’s strategic decision to introduce modern, sustainability-focused financing instruments into Azerbaijan’s capital markets, and I am proud that SOCAR Capital served as the execution arm behind this important initiative.”
SOCAR is known for initiating and issuing USD 200 million “green” bonds. From the early stages, the company took it upon itself to ensure that this initiative was implemented with the highest financial, structural, and operational standards.
“We designed the transaction for the domestic market, structured the financial terms, coordinated with investors, and ensured that the product was accessible, transparent, and aligned with the sustainability goals set by SOCAR,” Samir Kerimli added.
With a five-year maturity, a 6% annual coupon, and quarterly interest payments in US dollars, the bond was built to meet the expectations of local investors seeking both financial stability and meaningful participation in the country’s environmental transformation.
“The strong demand from individual and institutional investors showed that the Azerbaijani market is ready for sustainability-oriented instruments and is increasingly motivated to support long-term ESG priorities,” Kerimli noted.
One of the most important elements of this issuance is the direct allocation of proceeds to SOCAR Green, the entity responsible for designing and implementing SOCAR’s renewable energy and decarbonisation agenda. For SOCAR, every dollar raised from the public needed to contribute to real, measurable environmental progress.
These funds are now being directed toward projects such as renewable energy development, energy-efficiency upgrades, methane-emission reduction technologies, flare-gas recovery, and digital optimisation across SOCAR Group.
SOCAR has also strengthened its overall ESG standing internationally. In 2024, it received an initial BBB ESG rating from MSCI, making it the first energy company in the Caspian region to attain this level. This rating reflects SOCAR’s progress in emissions reduction, waste management, biodiversity protection, safety performance, governance, transparency, and stakeholder engagement.
For the company, this recognition reaffirms that the company’s sustainability transformation is being validated not only through financial instruments but also through independent global assessments. It also supports SOCAR’s long-term strategy for responsible growth and aligns with the company’s environmental and governance commitments.
“From SOCAR Capital’s perspective, these achievements demonstrate how a financial institution can serve as an effective facilitator of strategic sustainability goals. SOCAR defines the vision and environmental priorities; our responsibility is to create robust, transparent, and investable financial structures that make this vision achievable. This collaboration model ensures that environmental transformation is backed not only by strategic intent but also by strong financial execution,” Kerimli told International Finance.
SOCAR Capital believes that strengthening Azerbaijan’s internal financial ecosystem is crucial for long-term economic resilience. By introducing a “green” instrument into the local market, the venture enabled Azerbaijani investors to participate directly in the financing of the country’s sustainability transition. This aligns with SOCAR Capital’s mission to transform itself into a modern financial platform that brings global market practices into the local environment.
“For me, this award is not only a recognition of a successful transaction — it is a validation of a broader shift happening in our financial markets. The appetite for ESG-linked investments is growing. Investors are more informed, more engaged, and more willing to support long-term environmental objectives. The improvements reflected in SOCAR’s MSCI BBB rating further demonstrate that sustainability has become a strategic pillar shaping the company’s development trajectory,” the CEO added.
SOCAR Capital is now planning to expand its work in ESG-aligned financing. The company is exploring new thematic instruments, enhanced reporting practices, and deeper collaboration with partners who prioritise sustainability.
“Our objective is clear: to continue being the financial execution engine that supports SOCAR’s transformation into a more energy-efficient, sustainable, and future-oriented organisation. This recognition from International Finance motivates us to move forward with even greater confidence. It encourages us to align financial innovation with environmental responsibility. I believe this combination will define the next chapter of SOCAR’s development and Azerbaijan’s capital market evolution,” Samir Kerimli concluded.