Gazprom Neft completes RUB10 billion placement of exchange-traded bonds with the lowest coupon rate on the Russian market to date

13 December 2017

12 December — Gazprom Neft (rated AAA-RU by the Analytical Credit Rating Agency (ACRA)) has successfully closed the bookbuilding for its 001P-04R-series exchange-traded bonds, with a total nominal value of RUB10 billion, a maturity of seven years, and a semi-annual coupon period. The company plans to secure a rating for its latest bond issue from the ACRA.

High demand for the placement from all main categories of market investors, including 29 orders from various accounts, together with a more than 2.8-fold oversubscription, allowed the company to reduce the rate several times, ultimately setting this more than 20 basis points lower than the initial upper limit, at 7.70 percent per year.

JSC “Sberbank CIB”, Rosselkhozbank and Bank GPB (JSC) acted as arrangers, with JSC “Sberbank CIB” acting as placement agent. Settlement is scheduled for 21 December 2017 on the Moscow Exchange (MOEX).

Alexei Yankevich, Gazprom Neft Deputy CEO for Economics and Finance commented: “2017 is proving a record year for the company in terms of the number of bond issues. We are seeing a positive trend on the Russian debt capital market, as evidenced by the change in the rate sought for Gazprom Neft’s placements. Our fourth ruble bond issue this year has set a record for seven-year placement rate among corporate issuers, achieving the lowest coupon rate in the entire history of the Russian bond market.”