Gazprom to Sell First Euro Debt Since Last Year
October 08 2015 - 7:20AM
Dow Jones News
Russian energy giant OAO Gazprom is set to sell a three-year
euro-denominated bond on Thursday, according to a person familiar
with the deal.
Pricing guidance on the deal suggests that Gazprom will pay an
interest rate of 4.75% to 4.875% on the bond, according to the
person.
Mining firm Norilsk Nickel broke a nine-month dollar bond freeze
when it issued a $1 billion bond on Tuesday at an interest rate of
6.625%.
These bond issues come as some investors take encouragement from
a perceived easing of tensions in Ukraine, concluding this lessens
the likelihood of further international sanctions being imposed on
Russian companies.
For Russian companies, this has helped lower financing costs
this year, prompting them to start sounding out international bond
investors once again.
Russian companies have seen a drop in their financing costs this
year. The average yield on Russian corporate and quasi-sovereign
corporate debt denominated in U.S. dollars is now 6.3%, according
to Barclays.
The average yield rose to more than 13% last December following
a sharp fall in the price of oil, an escalation of the conflict in
Ukraine and the imposition of U.S. and European sanctions against
various Russian firms and individuals. Yields rise as prices
fall.
Gazprom last issued a bond in euros in February 2014, according
to Dealogic, when it paid an interest rate of 3.6% on a €750
million deal maturing in February 2021.
Gazprom did not immediately respond to a request for
comment.
Write to Christopher Whittall at
christopher.whittall@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 08, 2015 07:05 ET (11:05 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.