New issues of Southern Gas Corridor's bonds put for mass sale
By Aynur Jafarova
The new issues of the Southern Gas Corridor's bonds amounting $1.2 billion was put for mass sale at Baku Stock Exchange (BSE).
"InvestAZ Company was chosen as the broker of the acquirer," InvestAZ said on July 30.
The total volume of the newly-issued bonds is $1,246,355. Its prospectus has been recently registered by the Azerbaijani State Securities Committee. Some 12,463,550 bonds with a nominal value of $100 each were also issued.
The maturity is 720 days (two years) with a yield - a six-month Libor plus one percent. The interest will be paid in every six months.
Earlier Azerbaijan's state oil fund SOFAZ reacquired the total volume of primary issue of bonds of the Southern Gas Corridor CJSC.
The unsecured, interest-bearing, registered, and non-certificated bonds, the prospectus of which was registered by Azerbaijan's State Committee for Securities, were worth over $917.32 million.
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 related to the second stage 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 will provide 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.