Russia's Gazprom sets guidance for two-part $1.90 billion eurobond

By Reshmi Basu and Paul A. Harris

New York, July 13 - Russian natural gas giant OAO Gazprom set price guidance for a two-part offering of $1.9 billion in eurobonds, according to market sources.

Pricing is expected Friday morning.

The offer includes $640 million of amortizing notes due July 2013 with a 3.8-year average life. Price guidance has been set at 137½ basis points more than asset swaps, according to a market source. Another source put guidance at 5.70%.

Deutsche Bank is the bookrunner for the Rule 144A/Regulation S notes.

The second portion is a $1.222 billion deal, which will be guaranteed by Italy's state export credit agency, SACE SpA.

Guidance on this Regulation S deal is 4.30%, said a source.

Proceeds will be used to refinance debt incurred in the Blue Stream pipeline project.

Gazprom is based in Moscow.

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