28 October — Gazprom Neft rated AAA(RU) by the Analytical Credit Rating Agency (ACRA) has successfully closed the book building for its 003R-01R-series exchange-traded bonds, with a total nominal value of RUB25 billion, and a maturity of five years. The issue offers a two-year call option, with early redemption at the discretion of the issuer. The company expects to obtain a rating from Russia’s Analytical Credit Rating Agency (ACRA) for this new issue.
Gazprom Neft’s high credit quality ensured significant demand for the offering from all main categories of market investors. A more than three-fold over-subscription of the initial order book allowed the company to reduce the coupon rate to a record 6.85 percent per year — 25 basis points below the upper limit of the initial range. The offering was also increased by RUB10 billion on original expectations.
BK REGION LLC, Credit Bank of Moscow PJSC, Otkritie Bank PJSC and Bank GPB (JSC) acted as arrangers, with BK REGION LLC acting as placement agent. Settlement will take place on 12 November 2019 on the Moscow Exchange (MOEX).
Alexei Yankevich, Gazprom Neft Deputy CEO for Economics and Finance commented: “Our company has become the first issuer to enter the bond market following the Central Bank of the Russian Federation cutting its key rate to its lowest level since 2014. Optimum timing, together with Gazprom Neft’s reputation as a first-class and reliable borrower, were key factors in the success of this placement. We have given the company additional flexibility through the early redemption option, while achieving a record low coupon rate for similar maturities among all placements by corporate borrowers in the history of the Russian financial market.”