Gazprom Neft has completed a secondary placement of the 04 Series ruble bonds, totalling RUB 6.13 billion. Investors were offered bonds, reacquired by the company under an offer of April 2011.
During the placement the price ranged between 102%-102.5% of the par value (RUB 1,000) which translated into the yield of 7.96%-7.86% per annum by the time of the next offer (April 2018).
The final bid book to purchase Gazprom Neft bonds included proposals amounting to RUB 14 billion in total.
The placement was arranged by VTB Capital and Gazprombank.
“With the decline in global financial markets, falling oil prices and weakening of the ruble exchange rate, the demand for corporate bonds exceeded supply by more than twofold. As a result, the value of bonds was determined at the top of the price range, which indicates a high level of investors’ confidence in the company and reliability of its debt instruments,” noted Vadim Yakovlev, Deputy Chairman of the Management Board of Gazprom Neft.
The decision to issue the 10-years’ bearer’s documentary non-convertible coupon-bearing bonds of the 04 Series with mandatory centralized storage was made by the Board of Directors of Gazprom Neft in June 2008. National registration number is 4-04-00146-A dated 14 August 2008; issue volume is ten million with par value of RUB 1,000 each and the total nominal value of RUB 10 billion. The issue was placed in April 2009. The coupon amounted to 16.7% per annum with the coupon period of 182 days. In April 2011, an offer was carried out and a coupon of 8.2% per annum was set for seven years. The date of the next offer is April 2018; the bonds are to be repaid in April 2019.