Gazprom places exchange bonds for first time


Gazprom successfully placed two debut issues of exchange bonds (BO-19 and BO-20 series) with a 30-year maturity worth a total of RUB 30 billion at the MICEX Stock Exchange.

The raised funds will be appropriated to finance Gazprom's current activities.

The bond issue has become the most long-term instrument for Gazprom in the local debt market, thus enabling the Company to lengthen its liability structure.

In case of the expected disinflation due to the monetary policy pursued by the Russian Government, the placing of Gazprom's exchange obligations will be one of the most efficient instruments of long-term financing in the national currency.


Gazprom completed the debut placing of BO-19 and BO-20 exchange obligations on November 27, 2013.

The rate of the first bond coupon amounted to 7.3 per cent per annum, while the current market return of the circulating bonds with a maturity of up to two years is 7.7 per cent per annum. The rates of the follow-up coupons are linked to the annual consumer price index plus one per cent. In addition, the marginal value of the coupon rate (10 per cent) was defined for the Company to be able to call the bonds in case the rate is exceeded.

The deal was organized by Gazprombank, Renaissance Broker and Sberbank CIB.

Apart from exchange bonds, two issues of Gazprom's A9 and A11 ruble bonds worth RUB 10 billion are currently circulating at the MICEX Stock Exchange as well as three bond issues of Gazprom capital LLC worth RUB 30 billion.

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