Gazprom Neft has successfully completed the book-building of series BO-01 and BO-04 exchange-traded bonds with a total nominal value of RUB15 billion, a maturity of 30 years, and a semi-annual coupon period. The issue has an embedded five-year put-option.
Considerable interest was shown in the offering, with more than 40 investors participating in the book-building. High demand for the bonds, oversubscribed almost three-fold, allowed Gazprom Neft to close the book with a coupon rate of 9.40 percent per year. The spread over federal bonds is just 90 bps.
Gazprombank, Sberbank CIB and VTB Capital acted as arrangers, with CJSC “Sperbank CIB” acting as placement agent. Settlement will take place on 30 August 2016 on the Moscow Exchange (MOEX).
Alexei Yankevich, Gazprom Neft Deputy CEO for Economics and Finance commented: “We have seen considerable interest from investors in our company bonds, confirming the effectiveness of the instrument chosen and the timing of the offering. Gazprom Neft’s third market offering this year marks a record low coupon rate among all Russian corporate debt offerings in more than two and a half years.”
Gazprom Neft has three outstanding domestic bond issues with a total nominal value of RUB30 billion and three exchange traded bond issues with a total nominal value of RUB35 billion.
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