US Investors Purchased About 50% of Gazprom Eurobonds in Dollars
OREANDA-NEWS On February 6, Gazprom placed seven-year Eurobonds worth $ 1.25 billion with a yield of 5.15% per annum. About 50% of the total volume of the issue was purchased by investors from the United States, reported in Gazprombank [one of the main organizers of the transaction]. A syndicate of eight banks participated in the placement.
"Once again, Gazprom not only opened the market, but actually revalued the cost of its loans in the secondary market. For example, after the placement of its bonds are traded slightly below par, which indicates the minimum possible pricing of the issue and accuracy in the time of placement. A new benchmark has been set for Russian borrowers, a new balance point has been found with the interests of investors, we think, in the interests of all, and the entire Russian market," commented Denis Shulakov, first Vice President of Gazprombank.
"More than 300 investors participated in the deal, and, most importantly, among them are leading American and European institutional names. Swiss investors are active on a par with Russians - by 10%, continental Europe - about 21%, including 7% of investors from Germany and Austria, the British - 6%, Asian investors also participated," Shulakov added.
The participation of American investors in the placement of Gazprom's Eurobonds was about 50% of the final volume of the issue. The total demand reached $3.5 billion, and in the whole course of collecting the applications exceeded $5 billion, a record volume of demand and embed in 2014 for Russian corporate issuers, said in Gazprombank.
The initial benchmark of Eurobonds yield with maturity in February 2026 was 5.5-5.625% per annum.
The organizers of the placement of Gazprom's first Eurobonds in 2019 were Gazprombank, VTB Capital, Renaissance capital, JP Morgan, Banca IMI, Credit Agricole CIB, Mizuho Securities and SMBC Nikko.
The last time Gazprom entered the foreign borrowing market with the dollar issue of Eurobonds in 2017. Then the company raised $ 750 million at 4.95% per annum for a period of 10 years.