BNP Paribas Appears as Organizer to Co-Finance Project of Expanding Highway from Hajigabul to Georgian Border

Business Materials 9 December 2006 15:13 (UTC +04:00)

The Azerbaijani Government finally defined the financial sources for the project of expanding the highway from Hajigabul to the Georgian border from dual highway to dual-dual highway. Part of the border will be financed by French Bank BNP Paribas, and other part Korean Woori Bank.

BNP Paribas plans to allocate $450 mln under the guarantee of the Japanese Bank for International Co-operation (JBIC) and under the insurance of Japanese agency Nexy. The Bank suggests credit for 10 years (including period of grace construction period +6 months) and with libor+margin (1,6-1,7%) , Trend reports quoting the Cabinet of Ministers of Azerbaijan.

BNP Paribas is the organizer of the credit and intends to participate in jointly financing with other creditors. These finances will be directed towards financing the stretches from Hajigabul to Yevlakh (184,8 km) and from Gazakh to Georgian border (38 РєРј).

The remaining part of the financing will be ensured by Woori Bank that is ready to allocate nearly $150-200 mln. The finance of the Korean Bank is intended for 15 years with 3 years of grace period and libor + margin (higher than 1%). The contracts are intended to be made in 2007.