The purchase of the bond was realized in the framework of the “Main framework (program) of utilization and management of assets of the State Oil Fund of the Republic of Azerbaijan in 2011” approved by the Decree of the President of the Republic of Azerbaijan dated December 28, 2010. According to the program Oil Fund may invest in the securities of oil and gas companies operating in Caspian Sea basin. The issuer or its parent company of these securities should have a long-term investment grade credit rating.

Proceeds obtained from the sale of the bond were utilized for increasing the share of Azerbaijan (ACG) Limited by 1.6461% in the Agreement on the joint development and production sharing for the Azeri and Chirag fields and the deep water portion of the Gunashli field.

The maturity date of the bond is December 31, 2024 and the coupon rate equals to 6-month LIBOR + 1%.

Agreement on the joint development and production sharing for the Azeri and Chirag fields and the deep water portion of the Gunashli field was signed among the State Oil Company of the Azerbaijan Republic and foreign oil companies on 20 September, 1994. The Azeri-Chirag–Gunashli (ACG field) is the largest oil field in the Azerbaijan sector of the Caspian Sea. ACG field, located approximately 100 km east of Baku, is developed by BP Azerbaijan–the operator of the Azerbaijan International Operating Company (AIOC).