Foreign investor demand covers 80% of bids for Gazprom Eurobonds

MOSCOW, Nov 10 (PRIME) -- Demand of foreign investors for 7-year euro-denominated Eurobonds of Russia’s gas giant Gazprom exceeded 80% of the bidding book, Denis Shulakov, first vice president of one of the placement’s organizers – Gazprombank, told reporters late on Tuesday.

Gazprom sold 500 million euros of the 7-year Eurobonds at 1.85% annually. The initial yield guidance was 2.125–2.25%.

“It is worth noting about the issue that there was wide diversification of investors and high quality of the bidding book, which consisted of orders from the largest institutional investors from the U.K., Germany, France, Switzerland, the Netherlands, the U.S, Asia, and Russia. Demand from foreign investors exceeded 80% of the combined bidding book,” Shulakov said.

Gazprom took a favorable window for the Eurobond placement as correction of the base rates created a positive mood on the markets. In total, 145 investors bid, and the bidding book exceeded 1.5 billion euros, he said.

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