Fitch affirms Southern Gas Corridor CJSC's notes at 'BB+'

Fitch affirms Southern Gas Corridor CJSC
# 01 February 2024 12:01 (UTC +04:00)

Fitch Ratings has affirmed Southern Gas Corridor CJSC's (SGC) senior unsecured Eurobond's long-term foreign-currency rating at 'BB+', APA reports citing the Agency.

The affirmation reflects Fitch's unchanged view on SGC's USD2 billion Eurobonds maturing in 2026 fully guaranteed by the Republic of Azerbaijan (BB+/Positive).

It was noted that the rating reflects the unconditional, unsubordinated and irrevocable guarantee of full and timely repayment provided to SGC's noteholders by the state.

Recall that in order to ensure the delivery of Azerbaijani gas to the European markets, on 29 October 2013 the President of the Republic of Azerbaijan signed a Decree establishing a State Commission with the purpose of ensuring state control over and providing state support in regard to the effective implementation of the full-field development of Shah Deniz gas-condensate field (“SD2”), South Caucasus Pipeline Expansion (“SCPX”), implementation of Trans-Anatolian Pipeline (“TANAP”) and Trans Adriatic Pipeline (“TAP”) projects (together “Projects”).

Subsequently, the President of the Republic of Azerbaijan signed a Decree dated 25 February 2014 on the establishment of “Southern Gas Corridor” Closed Joint-Stock Company (“SGC”) with the purpose of consolidating, managing and financing the State’s interests in the Projects. SGC was founded on 31 March 2014 by the State (the Ministry of Economy of Azerbaijan Republic) (51%) and SOCAR (49%).

In accordance with the aforementioned Decree, all of SOCAR’s participating interests in the Projects were transferred to SGC, which undertook onward financing of these participating interests.

SOCAR carries out operational work on Projects on behalf of SGC.

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