Azerbaijani government is going to borrow $2 billion to fund construction of SGC project.
Financial Times writes that on March 10 representatives of the operator of SGC – Azerbaijani state-run Southern Gas Corridor Company (SGCC) – will start meetings with the investors to prepare for issue of debt instruments to the amount of $2 billion.
FT reported that earlier Azerbaijan has had only one issue of sovereign bonds – 10-year papers issued in 2014. In January and February 2016 their profitability increased by 1% - to 6.7% against the background of decline of oil prices, but then they went back to 5.7%.
Yesterday Azerbaijani Finance Ministry reported that from March 10 to 16 the governmental delegation will have a road show of bonds for SGC at the world main financial centres – London, New York, Los Angeles, San Francisco and Boston.
Depending on the market conditions, issue of bonds of SGC company against security of the state is forecast to be $1 billion, said the same source.
The Azerbaijani delegation, which is comprised of representatives of SGC, is headed by Finance Minister Samir Sharifov.
The same source reported that placement is planned to fund the Shah Deniz-2 and SGC (SOCAR’s share 16.7% in each), TANAP (58%) and TAP (20%).
“According to the resolution of the Azerbaijan Cabinet of Ministers of March 7, 2016, CitiBank, UniCredit and JP Morgan are representatives for bonds placement. Lazard FreresSAS company will act as a financial consultant of the Azeri side,” reads the statement.—0—
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