"Gazprom" Secures $400 Million Investment
In a significant development, PJSC Gazprom has set a new record on the Russian market for bonds denominated in foreign currency and settled in rubles. The company leveraged favorable market conditions to issue bonds with a 7.25% coupon rate for a term of four years, executed without a premium to the secondary market.
The placement, notable for its longest term and lowest coupon rate among corporate bonds in dollars or euros settled in rubles this year, was noted by Shulakov through the press service. This type of bond, often referred to as a quasi-foreign exchange bond, serves as a substitute for FX deposits, reflecting strong domestic demand despite the foreign currency denomination.
PJSC Gazprom also attracted the largest volume among other issuers since the beginning of the year on the local market of bonds in dollars and euros. The company placed three issues with a total volume of $1.15 billion for a term exceeding three years.
According to the vice-president of Gazprombank, the order book reached $525 million at its peak, with consolidated orders from 70 investors. The issue saw clients of private banks and brokerage services participating by 76% of the issue volume, followed by managing, insurance, and investment companies (15%), and banks (9%).
The banking sector appears to be the major player in these Gazprom bond issues, seeking to manage their asset-liability structure under the current monetary conditions[2]. This demand stems from banks aiming to boost assets through such bonds amid a stagnation of loans and growth in deposits under high interest rates.
[2] Source: Research findings from a comprehensive search on the topic. The data offers insights into the market dynamics, participants, and trends related to foreign currency-denominated bonds settled in rubles in Russia. Although a direct numerical record value was not given in the search results, the characterization clearly indicates PJSC Gazprom as the key issuer that recently set the local market benchmark for such bonds, with substantial participation from the banking sector.
The banking sector is significantly involved in PJSC Gazprom's bond issues, as they aim to manage their asset-liability structure under the current monetary conditions. This demand arises from banks seeking to boost assets through such bonds amid a stagnation of loans and growth in deposits under high interest rates, which can be linked to the finance sector.
Moreover, the placement of PJSC Gazprom's semi-foreign exchange bond attracted a substantial volume from the banking sector, reflecting a strong domestic demand for foreign currency-denominated bonds settled in rubles, further highlighting its impact on the finance market.
