13 Jul 2018 14:59

MIGA provides $1.1 bln in guarantees to SGC for TANAP gas pipeline construction

BAKU. July 13 (Interfax) - Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, has issued $1.1 billion in guarantees to support construction of the Trans-Anatolian gas pipeline (TANAP), MIGA reported.

"The fifteen-year guarantee is being offered to cover AKA Bank, Citi, Credit Agricole CIB, ING, LBBW, Santander and Societe Generale for their loans to Southern Gas Corridor CJSC [Canub Qaz Dehlizi], a special purpose vehicle overseeing the Government of Azerbaijan's interests in the Southern Gas Corridor Program, and a key shareholder in TANAP," it said.

MIGA's guarantees provide protection in the event Azerbaijan fails to honor its sovereign guarantee on SGC payment obligations under the loans, it said.

In December 2016, MIGA approved $750 million in guarantees to SGC for TANAP construction, which SGC used to raise a syndicated loan of $750 million in June 30, 2018.