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Gazprom Neft optimises debt structuring in 2019

Press-release Efficiency

The structuring and management of Gazprom Neft’s debt portfolio in 2019 has been reviewed by the company’s Board of Directors.

Gazprom Neft successfully implemented various initiatives directed at optimising the structure of its debt portfolio throughout 2019, with the company reducing forex risks by proportionally increasing its ruble debt, as well as providing additional financial stability by increasing the proportion of long-term borrowings in the structuring of its debt portfolio. The company also increased public debt in proportion to bank borrowings through bond placements in November and December reaching a total RUB45 billion — offering record-breaking low coupon rates (the lowest in the history of the market) for comparable terms As at the date of issue .

Gazprom Neft fulfilled its financial obligations as required throughout 2019, using the most effective tools available and reaching agreements with creditors on improving terms for existing credit lines, as well as facilitating the unscheduled advance refinancing of liabilities and replacing previous borrowing commitments with new instruments offering more attractive terms. As a result of the various initiatives undertaken the company reduced the interest rate on its ruble debt (the main currency for borrowings) to a new record low for Gazprom Neft, delivering savings on interest costs.

Gazprom Neft is committed to continuing its work on optimising its debt portfolio throughout 2020 by selecting optimum instruments for debt financing in line with current market conditions and performance, including by developing and deploying new financing tools.