Terms of bond issuance for Southern Gas Corridor defined

Terms of bond issuance for Southern Gas Corridor defined

Azerbaijan's Southern Gas Corridor Company has released initial price thoughts for a ten-year bond at seven percent yield area.


Depending on market conditions, the SGC's bond offering under the state guarantee is forecasted at the level of $1 billion. Floatation is provided for the financing of Shah Deniz-2 and South Caucasus Pipeline (SCP) projects and Trans Anatolian (TANAP) and Trans Adriatic (TAP) pipelines.


Earlier, the Azerbaijani government held road shows of bonds March 10-16 for the SGC in the world's major financial centers - London, New York, Los Angeles, San Francisco and Boston.


Citibank, UniCredit and J.P. Morgan are the authorized companies on floatation of bonds according to the decision of Azerbaijan’s Cabinet of Ministers from March 7, 2016. Lazard Frères SAS company, in turn, acts as a financial advisor of the Azerbaijani side.


The international ratings agency Fitch Ratings has assigned CJSC Southern Gas Corridor's (SGC) senior unsecured Eurobonds a 'BB+(EXP)' expected foreign currency long-term rating.


The Southern Gas Corridor project’s (SGC) net financial needs for operations and capex will be close to $8.4 billion in 2016-2019, according to Fitch Ratings.


The Southern Gas Corridor is one of the priority energy projects for the EU. It envisages transportation of 10 billion cubic meters of Azerbaijani gas from the Caspian Sea to Europe through Georgia and Turkey.



Global Capital agency






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