OREANDA-NEWS. December 06, 2013. Gazprom has successfully placed two debut issues of exchange bonds (series BO-19 and BO-20) with a 30-year maturity and worth a total of RUB 30 bln on the MICEX Stock Exchange.

The funds raised will be used to finance Gazprom’s current activities.

The bond issue is Gazprom’s longest-term instrument in the local debt market, thus enabling the company to lengthen its liability structure.

If the forecasted disinflation occurs due to the monetary policy being pursued by the Russian government, this placement of Gazprom’s exchange bonds will be one of the most efficient long-term financing instruments denominated in Russia’s national currency.

The rate of the first coupon amounted to 7.3% per annum, while the current market yield of the circulating bonds with a maturity of up to two years is 7.7% per annum. The rates of the follow-up coupons are linked to the annual consumer price index plus one percent. In addition, the marginal value of the coupon rate (10% per annum) was defined so that the company can call the bonds in case the rate is exceeded.

The deal was organised by Gazprombank, Renaissance Broker and Sberbank CIB.

Apart from exchange bonds, two issues of Gazprom’s series A9 and A11 rouble bonds worth RUB 10 bln are currently circulating on the MICEX Stock Exchange as well as three bond issues of Gazprom Kapital worth RUB 30 bln.