Gazprom Neft has successfully closed the book building for its 003P-03 R-series exchange-traded bonds, with a total nominal value of RUB10 billion and a maturity of five years: the company’s high credit rating resulting in significant demand across all categories of market investors From Russia’s Analytical Credit Rating Agency (ACRA) at AAA (RU) and a more than two-fold oversubscription of the initial order book allowing the company to reduce the coupon rate to 6.20% per year — 20 basis points below the upper limit of the initial range.
BK REGION LLC, Credit Bank of Moscow PJSC and Promsvyazbank PJSC acted as arrangers, with BK Region LLC acting as placement agent. Settlement will take place on 27 February 2020 on the Moscow Exchange (MOEX). The company expects to obtain a rating for this new issue from Russia’s Analytical Credit Rating Agency (ACRA).
Alexei Yankevich, Deputy CEO for Economics and Finance, Gazprom Neft, commented: “Gazprom Neft is an active issuer on the bond market: and the company’s first placement in 2020 has seen it yet again deliver the lowest coupon rate for Russian corporate borrowers over the last five years or more. Gazprom Neft’s reputation and project portfolio are attracting considerable confidence and attention on the part of investors, meaning the company can raise finance on optimum terms.”