Investors from England bought 30% of new Eurobonds of "Gazprom"
OREANDA-NEWS Most of the new issue of five-year Gazprom Eurobonds for €1 billion was bought by investors from the UK and Continental Europe, as well as by the largest American institutional investors who did not participate in the company's previous comparable transactions. This information was said by first Vice-President of Gazprombank Denis Shulakov.
"Investors from the UK bought 30% of the issue, from Russia - 22%, from Germany and Austria - 15%. It is noteworthy that the deal came the largest American and well - known Dutch institutional investors who did not participate in the previous comparable issues", - said Shulakov. According to him, investors from the Netherlands bought 7% of the issue, the US offshore accounts bought 5% of the issue. Another 8% was bought by investors from Switzerland.
"The deal was held in the most difficult conditions of geopolitical uncertainty, but was placed at the best price taking into account all market parameters. Moreover, the successful and uninterrupted operation of Gazprom in the European energy market and its share growth to 35% in the second half of 2018, as well as the systematic work of its financial team with investors, made it possible to transfer all these accents to investors. As a result, the new issue is not just accepted by the market, but also came out with a premium to the secondary market in 15 b.p. at that time, even such famous European corporations as Volkswagen, had the day before, according to analysts, to offer a premium of about 40 b.p." Shulakov added.
After the opening of the US market, the order book reached its record volume of €1.5 billion, applications were filed by 190 investors. As a result, the yield benchmark was lowered from the initial 3,125% to 2,95-3,05%, and the placement itself took place along the lower border of this corridor, Shulakov added.
"Gazprom" has opened the way to other Russian issuers by posting a new issue in the Euro after a six-month break in the primary market for Eurobonds from Russia, associated with the international volatility. The great success of the placement once again confirmed not only Gazprom's strong position as an Issuer in the Eurobond market, but also its ability to work systematically not only in energy, but also in international financial markets, and now this work is appreciated. Gazprom is already the third Euro issue in circulation below 3%, and this is a market benchmark for all Russian borrowers. After placement on the secondary market, the bonds are traded near the nominal value, and this is the best proof of effective placement," Shulakov concluded.
Last Wednesday, Gazprom placed Eurobonds for €1 billion at 2.95% per annum. The accommodation was organized by Gazprombank, J. p. Morgan and UniCredit. The last time Gazprom placed Eurobonds in March - for €0.75 billion In total, the company has 24 Eurobond issues in circulation: for €6.65 billion, $10.05 billion, £1.35 billion and 2.75 billion Swiss francs.