General Announcement::Transaction on debut issue of Gazproms perpetual Eurobonds closed

Issuer & Securities

Issuer/ Manager
JSC GAZPROM
Securities
PJSC GAZPROM GDR - US3682872078 - AAI
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
27-Oct-2020 19:54:58
Status
New
Announcement Sub Title
Transaction on debut issue of Gazproms perpetual Eurobonds closed
Announcement Reference
SG201027OTHRMRVG
Submitted By (Co./ Ind. Name)
Horizon LLC / Yulia Razdrogina
Designation
Director
Description (Please provide a detailed description of the event in the box below)
A transaction on placement of a debut issue of perpetual subordinated Eurobonds of Gazprom expressed in US dollars and euros was closed on October 26, 2020.
The volume of investor demand has exceeded USD 7.4 billion, showing an all-time high for Gazprom Eurobond offerings since 2013.
As a result of placing two issues, the Company attracted USD 1.4 billion and EUR 1 billion (equivalent to USD 2.575 billion in total).
The securities were placed with a minimum premium rate (spread) with regard to senior Eurobonds of Gazprom compared to similar securities issued by other companies in 2020. The spread was 180 basis points for the USD-denominated issue and 190 basis points for the EUR-denominated issue (premiums of foreign issuers for placing hybrid instruments ranged from 200 to 320 basis points).
The structure of the transaction, drawing on the best international practices, allows Gazprom to include perpetual Eurobonds in its equity capital in accordance with the international financial reporting standards. This will help decrease the net debt and the net debt-to-EBITDA ratio of the Gazprom Group. In addition, rating agencies will be able to account for these bonds with a 50 per cent weight in the cost of capital.
The attracted funds will be used for general purposes of the Company, primarily, to refinance the current debt burden, subject to all legal restrictions.

Attachments

2020.10.26. Transaction on debut issue of Gazprom perpetual Eurobonds closed.pdf
Total size =151K