16 October — Gazprom Neft (rated AAA-RU by the Analytical Credit Rating Agency (ACRA)) has successfully closed the book building for its 001R-03R-series exchange-traded bonds, with a total nominal value of RUB25 billion, a maturity of five years, and a semi-annual coupon period. The company plans to secure a rating for its latest bond issue from the ACRA.
High demand for the offering from all main categories of market investors, together with 55 applications from various accounts and a more than two-fold oversubscription, allowed Gazprom Neft to close the book with a coupon rate of 7.85 percent per year.
Sberbank CIB and VTB Capital acted as arrangers, with Sberbank CIB acting as placement agent. Settlement will take place on 23 October 2017 on the Moscow Exchange (MOEX).
Alexei Yankevich, Deputy CEO for Economics and Finance, Gazprom Neft, commented: “A high level of interest from investors in the company’s latest bond placement allowed us to increase the size of the offering, from the RUB20 billion initially planned, to RUB25 billion. This issue not only saw us achieve the lowest coupon rate of all Russian corporate bond placements since the end of 2013, but also the lowest rate in Gazprom Neft’s entire placement history — which is compelling testament to the company’s effective operations on the Russian bond market.”