ADB signs Shah Deniz loan

Business 17-05-2017 12:02
ADB signs Shah Deniz loan
The Asian Development Bank (ADB) has signed a US$500m loan agreement for the Shah Deniz 2 gas field and Southern Gas Corridor and is in negotiations to provide a US$526m guarantee that could be concluded by mid-year.

Azerbaijan has a 16.67% stake in the Southern Gas Corridor gas pipeline to Europe from the Shah Deniz fields, which involves expansion of the Southern Caucasus Pipeline and construction of the
Trans Adriatic (TAP) and Trans Anatolian (TANAP) pipelines.

In December, ADB said it would provide a US$500m private sector loan to the Southern Gas Corridor Closed Joint Stock Company (SGC) and a US$500m sovereign counter-guaranteed partial credit guarantee to back commercial loans from international banks to SGC, which is 51% owned by the Azerbaijan government and 49% by State Oil Company of the Azerbaijan Republic (Socar).