Yamal LNG to sell $4.6 bln bonds to Russian Finance Ministry

MOSCOW, Jan 30 (PRIME) -- The board of directors of Russia’s Yamal LNG has decided to sell to the Finance Ministry two bond issues with a total worth of U.S. $4.6 billion in order to raise money from the National Wealth Fund, the company said in a statement on Friday.

In December 2014, the Russian government approved granting 150 billion rubles from the fund to the company. The money is to be invested in two 75 billion ruble tranches of the company’s bonds with a yield of two LIBOR rates plus 3%, but no less than 5%, and U.S. inflation plus 1%.

According to Novatek CEO and co-owner Leonid Mikhelson, it was the company’s decision to peg the bonds to the U.S. dollar inflation, and Yamal LNG shareholders are also to provide the government with guarantees according to their stake in the project. Novatek owns 60% in Yamal LNG while France’s total and China’s CNPC own 20% each.

(68.7303 rubles – U.S. $1)

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