Shah Deniz Stage 2 loan out to syndication
Syndication is underway on the $524.5 million 15-year loan for the Shah Deniz Stage 2 project. The facility was signed by project sponsor Southern Gas Corridor Company – owned 51% by the Azerbaijan government and 49% by State Oil Company of the Azerbaijan Republic (Socar) – on 22 December 2017.
Work on Shah Deniz Stage 2 (production of first gas) is 98.5% complete and gas from the project will be initially be exported to Turkey and European markets by expanding the South Caucasus Pipeline (a project which is 99.5% complete), and the Trans Anatolian Natural Gas Pipeline and Trans Adriatic Pipeline when they are finished.
Deutsche Bank is leading the deal and is said to be sounding out European and Asian commercial lenders. The loan is guaranteed by the government of Azerbaijan and is further bolstered by a partial credit guarantee from the Asian Development Bank (ADB). The deal is expected to reach financial close in March.
