Gazprom Neft successfully completes placement of RUB25 billion exchange traded bonds

23 March 2016

21 March 2016: Gazprom Neft has successfully completed the book-building of series BO-02 and BO-07 exchange traded bonds with a total nominal value of RUB25 billion and maturity of 30 years with a semi-annual coupon period. The issue has an embedded five-year put-option and a two-year call option, allowing the early redemption of the bonds at the company’s discretion.

More than 35 investors participated in the book-building. High demand from all categories of market investors resulted in the book being oversubscribed, allowing the company to close the book with a coupon rate of 10.65 percent per year.

Bank GPB (JSC) and REGION Broker Company LLC acted as arrangers, with REGION Broker Company LLC also acting as placement agent. Settlement will take place on 25 March 2016 on the Moscow Exchange (MOEX).

Alexei Yankevich, Gazprom Neft Deputy CEO for Economics and Finance commented: “This Gazprom Neft bonds issue is the highest-value market transaction from a Russian corporate issuer since 2014. This placement is unique for us in featuring an embedded call option, allowing the early redemption of the bonds after two years. Regarding the structure of this issue, we achieved the lowest coupon rate of all Russian corporate borrowers’ bond issues since mid-2014. Investors’ keen interest in the company’s securities, as well as the optimal timing of the deal, were the key success factors in this placement.”