The U.S. and the European Union have given political support to the Southern Corridor to diversifying supplies away from Russia. The route will deliver gas from the BP Plc-led Shah Deniz deposit off Azerbaijan’s coast in the Caspian Sea through a series of connecting pipelines across Turkey, eventually reaching Italy.
Azerbaijan is funding $13.5 billion of the projects, which have a total $46 billion price tag, Isayev said. The state has already invested $4.7 billion, he said.
Southern Gas Corridor’s $1 billion of 10-year bonds have gained since their sale in March, with the yield falling 45 basis points to 6.49 percent. This compares with 5.33 percent for the Azeri government’s 2024 dollar bonds and 4.5 percent for Russia’s newly sold 2026 bonds.
Azerbaijan is holding talks with other development banks including the Asian Development Bank and the European Bank for Reconstruction & Development, Isayev said.
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