Azerbaijan sells $1bn Southern Gas Corridor Eurobond
Azerbaijan's Southern Gas Corridor company has raised $1bn in a 10-year Eurobond at 6.875% yield, meeting half its target. From the development of Shah Deniz phase 2 gas development in the Caspian Sea to the Italian end of the TransAdriatic Pipeline, the project’s value is put at $45bn.
Azerbaijan's finance ministry released a statement saying that the demand was largely driven by investors from the US and the UK.
Azerbaijan started placing $2bn bonds – its share of the financing – in international markets in early February. US banks Citibank and JP Morgan, along with Italy's Unicredit bank have been chosen for the bond issue.
The Southern Gas Corridor is one of the most complex gas value chains ever developed in the world. Stretching over 3,500 km, crossing seven countries and involving more than a dozen major energy companies, it is comprised of several separate energy projects representing a total investment of about $45bn and is being launched at a time of economic uncertainty for its gas shippers.