Gazprom Placed Eurobonds at Record Low Rate

Gazprom placed Eurobonds for 500 million Swiss francs at a record low rate of 2.25%, TASS reported citing First Vice President of Gazprombank Denis Shulakov.

According to him, the said rate “is historically the lowest level of borrowings not only of Gazprom, but also of any Russian issuer.”

Applications from investors came from leading European countries, including Germany, Britain and Italy. At the same time, the greatest number of applications fell on the Swiss.

RBC reports the issue of four-year bonds of Gazprom was traded at 2.1% per annum.

Gazprom is an understandable borrower for investors and, despite all political risks, its credit quality remains very high,” explained financial analyst of ING Yegor Fedorov, adding that there are no good alternatives in the Eurobond market of developing countries.

In March, foreign investors purchased about 75% of the issue of new Gazprom Eurobonds. In total, the company placed Eurobonds for $ 750 million. Their yield is 4.95%.