“Rosneft” has decided to place bonds worth 600 billion rubles by the market


Rosneft on Monday, December 5, for half an hour closed the order book on their exchange bonds, said the report Issuer. As told sources , gathering investors ‘ proposals on ten-year paper oil companies with a volume of 600 billion rubles took place without prior notification to potential buyers, applications were accepted from 17:00 to 17:30 GMT. The company has established the rate under the first coupon at 10.1% per annum. The placement of the bonds is scheduled for December 7.

The organizer of placing — “VTB Capital”, said the representative of the VTB group.

“The book is closed, the demand for paper was high,” said a source close to “Rosneft”. He did not specify who was the potential purchaser of the bonds. The several sources of non-state pension funds and managing companies reported that were not involved in the transaction. “We were interested in the bonds of “Rosneft” as a quality Issuer, which also have not come out on the market, but no one offered to buy them,” — said the head of a large pension Fund. Two portfolio Manager in the UK, managing several billion of pension savings, said it also had not received any information about the upcoming placement of bonds of “Rosneft”.

“Most likely, the entire volume will redeem the concerned banks, which may lay the bonds in REPO transactions with the Central Bank. This is clearly not a market transaction,” said one of the managers.

“The market is now a shortage of quality papers. Rosneft could place the paper on the market, if the volume of placement amounted to about 50-60 billion rubles.” — said the portfolio Manager of UK “Kapital” Dmitry Postolenko. Other participants said the appetite of investors in case of market demand of “Rosneft” could be higher — 200-250 billion rubles.

“You could say that this placement made under the “closed subscription” among pre-selected investors, as the public announcement parameters (specific volume and rates of coupons) until the opening of the book and for the collection of applications was not. This method of placement of the bonds from time to time used by issuers, and it is not considered exotic in the Russian market”, — quotes Reuters the words of the General Director UK “Sputnik — capital management” Alexander Losev.

Now the appeal “Rosneft” offers 33 bonds with a total capacity of over 1.1 trillion rubles.

Among the potential purchasers of the bonds of “Rosneft” can be the structures close to the oil company. In late November, the Board of Directors of “Rosneft” approved the program of exchange bonds amounting to 1,071 trillion In an official statement it was noted that paper can also purchase the subsidiary company “Rosneft”. In addition, under the terms of the transaction in the case of complete and partial lack of demand of the bonds may be repurchased by the Gazprombank.

The money can go to Fund Rosneft’s purchase of its own 19.5% of the shares that the Russian authorities want to sell before the end of the year nearly 711 billion rubles, told Reuters market sources. However, as said on Monday the press-Secretary of “Rosneft” Mikhail Leontyev, the possible repurchase of own shares not included in the tasks of raising a bond loan. “We have identified the purpose of the loan — external transactions and refinancing debt. For these purposes, the buy-back is not” — he said (quoted by “RIA Novosti”).

The last time “Rosneft” has placed bonds almost two years ago. In January 2015, the company sold some bonds for 400 billion rubles in December 2014, Rosneft attracted a record for the Russian debt market the amount placed bonds for 625 billion rubles, market Participants believed that the deal was actually financed by the Bank of Russia, which attracted funds of the Bank “Discovery” of his paper in the REPO.

The head of the Bank of Russia Elvira Nabiullina said in February of 2015 in a Forbes interview that the deal Rosneft was opaque, confusing market and an additional factor of volatility in it.

According to analysts Sberbank CIB and Raiffeisen Bank, the bonds of the company could weaken the ruble, as “Rosneft” can involve the rubles of the bonds through the sale of foreign currency on its balance sheet. “I do not exclude that from-for such a large volume of placement of ruble liquidity bonds on time may disappear from the market, but the exchange rate is not expected to have any impact,” says Treasurer of the Bank included in the top 10.

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