Gazprom capital LLC places bonds worth RUB 30 billion
Today Gazprom capital LLC, a subsidiary of Gazprom, placed bonds worth RUB 30 billion at the MICEX Stock Exchange.
This is one of the biggest and unique transactions in the local corporate bond market – for the first time in the history of the domestic bond market 3 bond issues with varying maturities and volumes were placed simultaneously. The bond rates hit record lows for corporate borrows in the last 18 months.
On February 19, 2013 Gazprom capital LLC completed a call for bids from investors in the framework of placing three bond issues (series 04, 05, 06) with the total aggregate nominal value of RUB 30 billion and the maturities of 3 years (RUB 15 billion), 4 years (RUB 10 billion) and 5 years (RUB 5 billion) as well as the coupon yields.
Bonds worth RUB 30 billion became available on February 12 with the following coupon yield benchmarks: 7.50 to 7.65 per cent per annum with a 3 years maturity, 7.60 to 7.80 per cent per annum with a 4 years maturity and 7.70 to 7.95 per cent per annum with a 5 years maturity. The book was opened on February 18, 2013. During the book building the marketing ranges for the first coupon rates were revised three times inwards and downwards.
All investor groups submitted over 70 bids during the bond placement. The aggregate demand for bond issues amounted to some RUB 50 billion.
On February 19, 2013 at 5 p.m. (Moscow) the Gazprom capital LLC obligation books (series 04, 05, 06) were closed.
Summarizing the placed bids, Gazprom capital LLC fixed the following coupon yields: for series 04 – at 7.55 per cent per annum (coupon yields 1 to 10 are equal), for series 05 – at 7.55 per cent per annum (coupon yields 1 to 8 are equal), for series 06 – at 7.50 per cent per annum (coupon yields 1 to 6 are equal).
VTB Kapital, Gazprombank and Renaissance Capital act as bond placement organizers. VTB Kapital is the placement agent.