By Susanna Moon
Chicago, Dec. 2 - OAO Gazprom placed RUB 30 billion of 30-year exchange-traded bond issues in two tranches.
The coupon yield initially will be 7.3%, while the current market yield on traded bonds maturing in two years is 7.7%, according to a company press release. Subsequent coupon rates will be linked to the annual consumer price index plus 100 basis points. Also, the limit on the coupon rate was established at 10%, which, if exceeded, gives the company the right to early pay off the bonds.
The deal was arranged by Gazprombank, Renaissance Broker and Sberbank CIB.
Proceeds will be used to finance Gazprom'='s ongoing activities.
"In case of expected decrease in the inflation rate due to the current monetary policy in Russia, this issue of Gazprom's exchange-traded bonds will be one of the most efficient instruments of long-term financing in national currency," the company said.
Gazprom is a Moscow-based natural gas producer.
| Issuer: | OAO Gazprom
|
| Issue: | BO 19 and BO 20 series bonds
|
| Amount: | RUB 30 million
|
| Maturity: | 30 years
|
| Bookrunners: | Gazprombank, Renaissance Broker and Sberbank CIB
|
| Coupon: | 7.3% initially, then consumer price index plus 100 bps
|
| Settlement date: | Nov. 27
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB
|
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