Fourth bond issues for Southern Gas Corridor CJSC registered
By Aynur Jafarova
The Azerbaijani State Securities Committee has registered issue of prospectus of interest-bearing book-entry of unsecured bonds of the Southern Gas Corridor Closed Joint Stock Company (CJSC).
The value of issued prospectus stands at $252.2 million, the Baku Stock Exchange (BSE) said on November 27.
Some 2,522,000 bonds with a nominal value of $100 each have been issued within the framework of the emission. PSG-Broker LLC is the underwriter of the placement.
The turnover period is 10 calendar years, with the yield of 6 month Libor +1 percent. The payment of interest will be made every 6 months.
The Southern Gas Corridor CJSC has placed three bond issues of around $917.321 million (with a turnover period of 10 years) and $1,246,355 (for 2 years) and $101.12 million (for 10 years) so far.
On February 25, Azerbaijan's President Ilham Aliyev signed a decree on establishing a CJSC for effective management of energy projects.
The decree involved projects connected with the second stage of development of the giant Shah Deniz field and the expansion of the South Caucasus Pipeline, Trans-Anatolian (TANAP) Pipeline, and the Trans-Adriatic (TAP) pipeline.
SOFAZ has been assigned to provide an equity financing for the CJSC.
The funds that will be provided for the CJSC would make a long-term investment on return conditions.
The gas which will be produced at the second stage of Azerbaijan's Shah Deniz field development will be the main source of Southern Gas Corridor, which envisages the transportation of the Caspian gas to European markets.