“Gazprom” has placed Eurobonds on 500 million Swiss francs with the coupon rate of 3,375%, said one of the organizers of the loan.
Bonds maturing in December 2018, the Bank presented to investors earlier this week in Switzerland. The organizers of the issue were Deutsche Bank, UBS, Gazprombank and the investment Bank “Renaissance capital”.
A source in the Western investment Bank said that the rate was lower than the yield at which similar traded securities of “Gazprom” in Swiss francs in the secondary market, 10 b.p. The yield of Eurobonds of Gazprom, denominated in CHF maturing in 2019 is of 3.69%.
“We have not seen such a high demand for securities of Russian issuers. Investors filed applications for $2 billion,” — commented the Executive Director, the head of the Department of CEMEA debt market Ranpo Milic. He said that this is partly due to low interest rates in Europe, adding that in particular in Switzerland has a negative interest rate on debt instruments. “In addition, the increased demand of investors due to the fact that on the market for a long time did not go out of quality issuers from Russia”, — said the investment banker.
Milich noted that the European market, despite the sanctions, are now very positive attitude to new placements. “I think that the market is open not only for “blue chips”, but also for companies of the second echelon from Russia,” he said.
The last time Gazprom placed its Eurobonds in October 2015, then the gas monopolist managed to place three-year bonds for €1 billion of 4.625%. The company several times changed the profitability range: the original was 5-5,125%, it was reduced to 4.75 4,875%. The organizers of the loan made by the banks Banca IMI (Intesa), JPMorgan and Unicredit.
Buyers of Eurobonds of “Gazprom” were European investors. According to one of the organizers of the placement, mainly European funds, banks and institutional investors and Swiss private banks. “Issues in CHF usually interesting to private banking clients who use the services of Swiss banks”, — quotes Bloomberg words of the portfolio Manager “VTB Capital asset Management” Oleg Tsetsegov. The reduction of tension in relations between Russia and Western countries, as well as stabilization in the oil market contribute to the return of investors in Russian assets, said Tsetsegov.
“I think the decision of “Gazprom” to place bonds in Swiss francs is partly due to the fact that they already have with investors, before the company placed two issues in Switzerland. Issuers thus maintain contact with investors”, — said a top Manager of a Western investment Bank. In addition, in his opinion, Gazprom, placing bonds in various currencies, seek to diversify currency risks. Before to place the loan in euros in November 2014, the company sold to the investors securities of $700 million under 4,45%.