Gazprombank places 3-yr yuan Eurobonds at 4.25% - source
MOSCOW. Jan 23 (Interfax) - Gazprombank placed three-year Eurobonds totaling 1 billion yuan and at 4.25% annually, a financial market source told Interfax.
The initial yield guidance for the issue was 4.375%, but heavy demand made it possible to lower the yield, the source said. Demand totaled about 2 billion yuan.
The bonds are denominated in "offshore yuan", which circulate outside continental China.
Gazprombank began the road show for the issue on January 20. HSBC, BOC International and GPB-Financial Services are the placement organizers.
It is not Gazprombank's first yuan-denominated Eurobond issue: in February 2013, it placed three-year Eurobonds totaling 500 million yuan at 4% annually.
It is the second time this month Gazprombank has borrowed on international debt markets. Last week is placed subordinated Eurobonds totaling 325 million Swiss francs paying a coupon rate of 5.125% annually.
Gazprombank was the third biggest Russian bank by assets as of the end of the third quarter of 2013 according to the Interfax-100 ranking compiled by the Center for Economic Analysis.