Gazprom has placed $ 2 billion in eight-year Eurobonds at a record low rate of 2.95 percent. This was announced by Denis Shulakov, First Vice President of Gazprombank.
PJSC Gazprom opened the international market for corporate borrowing from Russia in 2021 with a new successful deal by placing an issue of its senior Eurobonds in the “benchmark” volume of $ 2 billion with a yield of 2.95 percent for a period of 8 years, “he said .
According to Shulakov, at the peak of demand, the investor order book reached more than $ 4 billion, including 250 accounts. He noted that with its new successful placement, Gazprom set a record for the minimum coupon rate both for its own dollar-denominated Eurobonds and among five-year Eurobonds of Russian and CIS issuers.
“It should be specially noted that despite the volume of the issue of $ 2 billion, comparable to the issues of the world’s largest oil and gas companies, Gazprom carried out the placement without a premium for the new issue,” Shulakov stressed.
Demand from international investors exceeded 75 percent of the order book, including investors from the US, UK, Switzerland and other countries in Europe, Asia and the Middle East. According to the first vice president, the issue took place after a US weekend at a time of high volatility, but Gazprom’s financial team was able to identify the window with the most favorable market conditions.
Gazprom has placed securities several times in the past year. In October, the company placed corporate perpetual Eurobonds in dollars and euros – $ 1.4 billion and a billion euros. Prior to that, in June Gazprom placed a $ 1 billion dollar Eurobond issue with a coupon rate of 3 percent.