TODAY.AZ / Business

SOFAZ reacquires all primary issue of bonds of Southern Gas Corridor CJSC

07 May 2014 [09:00] - TODAY.AZ
By AzerNews

Azerbaijan's state oil fund SOFAZ has reacquired the total volume of primary issue of bonds of the Southern Gas Corridor Closed Joint Stock Company (CJSC).

This was announced by the broker of the acquirer -- INVESTAZ Company on May 6.

The unsecured, interest-bearing, registered, and non-certificated bonds, the prospectus of which was recently registered by Azerbaijan's State Committee for Securities, are worth over $917.32 million. Some 9,173,208 bonds, each with a nominal value of $100, will be placed at Baku Stock Exchange.

"This is the largest transaction volume in the history of Baku Stock Exchange," INVESTAZ said.

Azerbaijani President Ilham Aliyev signed a decree on establishing a CJSC for effective management of energy projects on February 25.

The decree concerns projects related to the second stage development at 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 instructed 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 the Southern Gas Corridor, which envisages the transportation of the Caspian gas to European markets.

The Shah Deniz field, one of the world's largest gas-condensate fields, was discovered in 1999. Its reserves are estimated at 1.2 trillion cubic meters of gas. Overall, the field has proven to be a secure and reliable gas supplier to Azerbaijan, Georgia, Turkey, and Europe.
URL: http://www.today.az/news/business/133372.html

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