Azerbaijani company Southern Gas Corridor (SGC) has placed Euro bonds to a total amount of $1 billion with the maturity of the bond issue of 10 years, reported Global Capital agency.
The bonds were sold at the price of 99.112% of face value with the coupon rate of 6.875%. The demand was mainly ensured by the investors from the US (46%) and UK (43%).
The bonds have been placed to fund the Shah Deniz Phase 2, Southern Caucasian Gas pipeline (SCG), Trans Anadolu (TANAP) gas pipeline and Trans Adriatic Pipeline (TAP) projects.
From March 10 to 16 the Azerbaijani government has held a roadshow of the bonds for SGC at the world main financial centres, such as London, New York and Boston.
According to the decision of the Azerbaijan Cabinet of Ministers of March 7, 2016, Citi Bank, Uni Credit and JP Morgan are authorized banks for the bonds placement. Lazard Freres SAS company acts as a financial consultant on the Azerbaijani side.
International rating agency Fitch has awarded SGC bonds the expected long-term rating “BB+” in foreign currency.
According to the agency’s analysts, from 2016 to 2019 the operation and capital costs for the SGC project will total about $8.4 billion.
* SGC closed-type joint stock company (JSC) was established by the Azerbaijani President Ilham Aliyev’ decree on February 25, 2014. SGC is fully owned by the Azerbaijani state: 51% shares are held by the Ministry of Economy and 49% shares by SOCAR.—0—
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