The Georgian Oil and Gas Corporation (GOGC) is selling bonds worth $250 million at the London Exchange to build dams at the western part of the state. A cascade of dams is planned in Imereti to produce 450 MW, Trend reports.
The Turkish investor scrapped financing of the project last year.
Demand for the bonds exceeded the initial bid fourfold, the interest rate dropped to 7.125%. Five-year bonds were purchased by European and US investors. Plans to sell the bonds were announced back in 2011.
The State Oil Company of the Azerbaijani Republic (SOCAR) expressed interest in purchasing a share of the GOGC. Azerbaijan is interested in the transit pipeline from Russia to Armenia, operated by the Georgian company.
GOGC is taking part in international projects, including the AGRI project to transport Azerbaijani gas to the Georgian coast to liquefy it and transport through the Black Sea to Romania. SOCAR, MVM (Hungary) and Romgaz (Romania) are also participating in the project.
AGRI has 3 versions of capacity 2 billion cubic meters annually, 5 billion or 8 billion. The project’s expenses depend on the version and vary from 1.2 billion to 4.5 billion euro.
The Georgian corporation extracts gas at the Ninotsmind Field of the Kakheti Region, Eastern Georgia. Over 2 million cubic meters of gas were sold for $255 per cubic 1,000 cubic meters on May 11.
GOGC announced a tender for construction of the 47-km Kutaisi-Senaki section of a gas pipeline in the West.
The Georgian Railway is another company which may sell a share.
Georgian opposition is opposed to sales of assets of strategic companies. Georgian Minister for Sustainable Economic Development Vera Kobalia said that Georgian authorities would never sell over 49% of shares of Georgian railways. Only 25% of the company is under sale.
Georgia put its debt securities of the Georgian Railways Company, Bank of Georgia, Georgian Eurobonds for sale by 2021.
