Board of Directors reviews Gazprom’s activities aimed at gaining new stock markets for Company’s shares
The Board of Directors took note of the information about Gazprom’s activities aimed at gaining new stock markets for the Company’s shares.
At present, Gazprom’s shares are listed on the Moscow and Saint Petersburg Exchanges as well as Russia’s over-the-counter market. The Global Depositary Receipts (GDRs) against the Company’s shares are traded on the London, Berlin and Frankfurt Stock Exchanges, the Moscow Exchange as well as the over-the-counter markets in the USA and Singapore.
Gazprom continues its work to expand the pool of international investors, including in the Asia-Pacific region. In June 2014 the Company successfully passed the listing procedure on the Singapore Exchange (SGX). Currently, Gazprom is studying the possibility to broaden its presence on the key exchange markets in Asia-Pacific, including to increase the listing level of its GDRs on SGX and to be admitted to listing on the Hong Kong Stock Exchange (HKEx).
HKEx is becoming a leading international stock market and has a trading link with the Shanghai Stock Exchange. The admission of Gazprom’s securities to the HKEx trading will give the Company a number of advantages. Particularly, this will extend the potential for raising finance in the region and will contribute to higher investment attractiveness of the Company in general.
Issues related to broadening Gazprom’s presence in Asia-Pacific and Asian capital markets are discussed by the Company’s top executives with stock market representatives and investors. For instance, in February Gazprom for the first time conducted its annual Investor Day in Hong Kong and Singapore. Special attention was paid by the event participants to Gazprom’s long-term financial strategy on the back of the changed geopolitical environment, the work done to enhance the quality of corporate governance and raise the Company’s stock liquidity.
The Board of Directors entrusted the Management Committee with continuing the work targeted at gaining new stock markets for Gazprom’s shares.
In February 2015 the Bank of Russia signed the IOSCO (International Organization of Securities Commissions) Multilateral Memorandum of Understanding Concerning Consultation and Cooperation, and the Exchange of Information. The IOSCO Memorandum signing extended the potential for placing shares and depositary receipts on international stock markets, including in Asia-Pacific.
The Hong Kong Stock Exchange (HKEx) is the world’s seventh largest stock exchange with the listed companies’ capitalization of USD 3.2 trillion. HKEx is the third largest in Asia-Pacific behind the Tokyo and Shanghai Stock Exchanges and is one of the fastest-growing stock markets in the world. Over the last ten years the yearly average growth of its capitalization was 14 per cent, dealings – 15 per cent. The daily average trading volume amounts to USD 6.2 billion.
The Singapore Exchange (SGX) is among the top ten stock markets in Asia-Pacific, with market capitalization of USD 0.8 trillion. Over the last ten years the yearly average growth of its capitalization was 13 per cent. The daily average trading volume amounts to USD 0.8 billion (the yearly average growth over the last ten years was 8 per cent).
In February 2015 China's biggest independent rating agency – Dagong Global Credit Rating Company Limited (Dagong) – assigned the highest credit rating to Gazprom – 'AAA' with a 'stable' outlook.
The agency named strong fundamentals and a high level of financial solvency among the criteria for assigning the highest rating to Gazprom. These factors provide for the assurance in Gazprom's fulfilling all its financial obligations, the Company's firm market position, its importance for the Russian economy as well as a high level of social responsibility of Gazprom's business.
According to the agency, the sovereign rating of the Russian Federation ('A', outlook is 'stable') is higher than of some other countries, including the USA ('A-', outlook is 'stable').