CJSC Southern Gas Corridor Placed Eurobonds for $1 Billion

CJSC Southern Gas Corridor additionally placed Eurobonds in the international capital market.

It was reported that after the placement by the South Gas Corridor CJSC in March 2016 of Eurobonds worth $ 1 billion with a yield of seven percent (with a coupon rate of 6.875 percent) and a maturity of 10 years, the issuer, in accordance with requirements 144a / RegS, again entered the international capital market for additional placement of bonds for the same amount - one billion dollars.

The bonds were issued for state guarantees. The placement of new bonds with a yield of 5.8 percent per annum within the internal yield of the primary issue is an indicator of the positive attitude of the capital market towards Azerbaijan and the Southern Gas Corridor. The additional issue raised the total amount of the bonds placed in international bond markets until 2026 to two billion dollars. Thus, this issue is considered the largest placement of Eurobonds in Azerbaijan at the moment.

Bonds of the Southern Gas Corridor, issued under the state guarantee, have become a subject of great interest on the part of investors.

45 percent of the bonds were purchased by investors from the United States, 40 percent by investors from the UK, 13 percent by those from other European countries, and two percent by investors from Asia and the Middle East. Applications for participation in the placement were received more than expected, and 90 percent of all the proposals were from fund managers. This issue was the second successful placement of Eurobonds over the past 12 months, which is a clear example of the confidence of foreign investors and their belief in the strong economy of Azerbaijan and the development of infrastructure for one of the world's largest gas fields.

The bond issuers are a syndicate of Citibank, UniCredit and JP Morgan. At the same time, Lazard Freres SAS acts as a financial adviser to the Azerbaijani side. Clifford Chance and Omni are legal advisors to the issuer, and White & Case and BM Morrison Partners LLC jointly act as legal advisors to leading managers. 12D