12 December —Gazprom Neft has successfully closed the book building for its 003P-02R-series exchange-traded bonds,* with a total nominal value of RUB20 billion, and a maturity of 10 years. The company expects to obtain a rating from Russia’s Analytical Credit Rating Agency (ACRA) for this new issue.
High demand for the offering and a four-fold oversubscription of the initial order book allowed the company to reduce the coupon rate to 7.15 percent per year — 25 basis points below the upper limit of the initial range. Market interest in the company’s bonds allowed the offering to be increased to RUB20 billion, twice as high as original expectations.
Sberbank CIB, Bank GPB (JSC), BK REGION LLC, Credit Bank of Moscow PJSC acted as arrangers, with Sberbank CIB acting as placement agent. Settlement will take place on 20 December 2019 on the Moscow Exchange MOEX.
«Gazprom Neft has continued its longstanding practice of successful placements on the Russian public debt market, and has become the oil and gas industry’s first issuer to issue a bond worth RUB20 billion, with a
10-yearmaturity. The possibility of a corporate placement for that sort of maturity is testament to the development of the Russian financial market, as well as investor confidence in the company’s long-term development strategy. The high demand for Gazprom Neft securities among the investment community has meant we have been able to fix the lowest possible coupon rate for the largest possible bond issue in the entire history of market placements in Russia over this sort of period».Alexei Yankevich Deputy CEO for Economics and Finance, Gazprom Neft
* Analytical Credit Rating Agency (ACRA) — AAA(RU).