Southern Gas Corridor signs MIGA-backed $750m loan

Azerbaijan's Southern Gas Corridor CJSC has signed a $750 million ($500 million tranche A and €215 million tranche B) 15-year syndicated loan with 95% MIGA cover to finance the Trans Anatolian Pipeline Natural Gas Pipeline (TANAP) project. The deal is part of a total MIGA-covered package of $1.1 billion comprising a $100 million buyers credit from Santander, around $200 million from Credit Agricole and loans from AKA Bank, Citi, ING, LBBW, Santander and Societe Generale.

TANAP, together with Trans-Adriatic Pipeline (TAP), is a part of the Southern Gas Corridor, which provides for the transportation of gas from the Azerbaijani field Shah Deniz to Europe. The initial capacity of TANAP is expected to be 16 billion cubic meters of gas per year. About six billion cubic meters will be supplied to Turkey, and the rest to Europe. After completion of the TAP, the gas will reach Europe in early 2020.

Separately, the EBRD has also approved a €500 million loan for the TAP project.