Gazprom placed the A5 series corporate notes worth RUR 5 billion
On 12 October Gazprom placed A5 series corporate notes denominated in rubles, the face value is RUR 1000, and maturity is three years.
The coupon yield payable every 182nd day was set at 7.58% as a result of competitive evaluation at the Moscow Inter-Bank Currency Exchange. Investors placed 120 bids for total sum exceeding RUR 9 billion. During the auction, 73 bids were accepted.
The loan underwriters were the Renaissance Capital Investment Group and Rosbank. Co-underwriters were the Gorizont Investment Company and United Financial Group, with the Federal Stock Corporation involved as a financial consultant.
The loan will go for financing capital expenditures to maintain current operational level, the new projects to be introduced, the short-term debt servicing and the optimization of debt structure.
Background
The first domestic placement of the series A1 notes for the worth of RUR 3 billion was effected by Gazprom in July 1999. The RUR 5 billion second A2 placement was in November 2002. The A3 placement with a three years' maturity for the worth of RUR 10 billion was successfully made on February 3, 2004. It was the largest placement in the history of the Russian corporate loan management. In August 2004, A4, A5 and A6 ruble-denominated notes were registered with the authorities, each for the RUR 5 billion worth. A4 and A6 series notes are to be placed in 2005.
Information Directorate, OAO Gazprom