Gazprom Neft successfully issues series 12 bonds for a total of 10 billion rubles

29 November 2012

On November 28, 2012, Gazprom Neft successfully closed its order book for series 12 bonds with a total nominal value of 10 billion rubles and a maturity date of ten years from the date of issue. The issue sets a put date in five years.

Investors evinced significant interest in the company’s bonds. There was a total demand for approximately 37 billion rubles worth of the bonds, i.e. an oversubscription of nearly four times. During the marketing campaign, over fifty applications from Russian and international investors were received.

The high demand for Gazprom Neft bonds made it possible to close the order book at the lower boundary of the price range, at an 8.5 percent annual interest rate. The total demand at the final interest rate was more than twice the declared issue volume.

The bond issue was organized by Gazprombank (Open Joint Stock Company) and Closed Joint Stock Company UniCredit Bank. Gazprombank (Open Joint Stock Company) was the issuing agent.

The transaction will be settled on December 5, 2012.

“One of the key factors in the success of the issue was that we picked the right time to go on the market. As a result, Gazprom Neft managed to achieve the lowest five-year coupon rate out of all bond issues made by Russian corporate borrowers on the domestic market in 2012,” noted Gazprom Neft Deputy CEO for Economics and Finance Alexei Yankevich.