Gazprom places debut bonds in the MICEX

November 28, 2013

Gazprom places debut exchange-traded bonds

Gazprom successfully placed two debut 30-year exchange-traded bond issues in total amount of RUB30bn (BO 19 and BO 20 series) in the MICEX.

Funds to be raised from this placement will be used to finance Gazprom's ongoing activities.

The issue is Gazprom's longest instrument in the local debt market, which allows expanding the company's liabilities.

In case of expected decrease in the inflation rate due to the current monetary policy in Russia, this issue of Gazprom's exchange-traded bonds will be one of the most efficient instruments of long-term financing in national currency.

Background

Gazprom completed the debut placement of BO 19 and BO 20 series bond issues on November 27, 2013.

The first bond coupon yield amounts to 7.3%, while the current market yield on traded bonds maturing in two years is 7.7%. Subsequent coupon rates will be linked to the annual consumer price index plus 1%. Also, the limit on coupon rate has been established at 10%, which, if exceeded, gives the company the right to early pay off the bonds.

The deal has been arranged by Gazprombank, Renaissance Broker and Sberbank CIB.

In addition to the exchange-traded bonds, two issues of Gazprom's ruble bonds of A9 and A11 series for the total amount of RUB10bn as well as three issues of Gazprom Capital's bonds for the total amount of RUB30bn are currently traded in the MICEX.

Information Directorate, OAO Gazprom

www.gazprom.ru

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