Page 103 - RusRPTAug21

8.5 Fixed income
Interest in the OFZ market picked up slightly in June as foreign investors’ share in the outstanding bonds increased marginally to 19.7% from 19.5% a month earlier. However, their share still remains well off the peak of 34.9% set in May 2020 before the pandemic and oil price shock.
8.5.1 Fixed income - bond news
Russian natural gas giant Gazprom placed $1bn worth of US dollar denominated 10-year Eurobonds, with the demand exceeding $2.8bn and the coupon rate set at 3.5% versus the initially guided 3.875%. As followed by bne IntelliNews, Gazprom's management has reduced its initial borrowing plan for the year by RUB100bn ($1.4bn) to RUB411bn, but the company was aiming to issue another eurobond, possibly in euros, US dollars and Swiss francs. It also intended to issue RUB150bn in perpetual bonds before the end of the year. The new issue offers a 20 basis points premium to the outstanding GAZPRU 30 (yield to maturity of 3.29%), while the longer-dated GAZPRU 34 trades at 3.70% YTM, BCS Global Markets analysts estimated, while suggesting that the yield of the new GAZPRU 31 may decline by 5-10bp in the short-term. As reported by bne IntelliNews, previously in January 2021 Gazprom issued a $2bn eurobond in London, and achieved a record-low rate not only for the company itself, but for any Russian issuer of bonds of over 5 years maturity.
103 RUSSIA Country Report August 2021 www.intellinews.com