Gazprom secures orders for 50 billion rubles in three-year bonds

Gazprom Capital collected orders for 50 billion rubles in bonds for Gazprom, with the debt due to mature in three years.

The monthly coupon will be set at the Bank of Russia’s key rate plus 1.5 percentage points.

The final issue was 2.5 times the initial target, and the company reduced the premium offered to investors by 0.1 percentage point during the sale.

Banks and insurance companies bought 64% of the bonds, while investment managers and private pension funds bought 34%; individual investors took 1.5%.

This follows a 60-billion-ruble Gazprom bond issue in August, which also offered a coupon 1.5 percentage points above the key rate.

Strong orders mean the issue exceeded its target, while the range of buyers shows demand from financial institutions.

The bonds are scheduled to be placed on November 18, with Gazprombank acting as placement agent.