Southern Gas Corridor CJSC Successfully Returns to the International Capital Markets with a USD 1bn 144A/RegS Tap of Its Existing 2026 Bonds. The notes are guaranteed by the Republic of Azerbaijan. The transaction priced with a final yield of 5.80%, well inside the original reoffer yield of 7.00%, underlining the improved market sentiment for SGC and the Republic of Azerbaijan. The tap increases the total size of the 2026 notes to US$2bn, making it the largest Eurobond from the country.
SGC, the issuer, is directly and indirectly 100% owned by the Republic of Azerbaijan and represents the country’s interest in the Southern Gas Corridor Project, an ongoing cross-border gas value chain stretching over 3,500 kilometres, supported by the EU, and aimed at exporting natural gas from Azerbaijan to Europe.
Citi, J.P. Morgan and UniCredit acted as Joint Lead Managers on the transaction and Lazard Freres as Financial Adviser to the issuer. Clifford Chance LLP and Omni Law Firm acted as the issuer's Legal Counsel and White & Case LLP and BM Morrison Partners LLC acted as JLMs’ Legal Counsel.
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