Gazprombank plans to issue $2 bln in Eurobonds, 30 bln rubles in bonds in 2012
MOSCOW. April 16 (Interfax) - Gazprombank plans to issue $2 billion in Eurobonds and 30 billion rubles in ruble-denominated bonds on the domestic market this year, the bank's First Vice President Igor Rusanov said during a Monday telephone conference.
"We will consider the possibility of placing Eurobonds, presumably at an amount of up to $2 billion in foreign currency, most likely in U.S. dollars. We also intend to take roughly 30 billion rubles on the domestic market," he said.
Borrowing on the external market includes a possible subordinated Eurobonds issue for increasing Tier 2 capital after a deal is wrapped up for converting a Vnesheconombank (VEB) subordinated loan into Gazprombank shares, Rusanov said.
During a previous meeting with journalists, deputy chairman of Gazprombank's management board Alexander Sobol said that it makes sense to issue subordinated bonds in amounts of more than $500 million. "As a rule, there is no sense in issuing less than $500 million. There is also probably no sense in issuing a great deal more, as subordinated debt is always somewhat more expensive than regular debt," he said.
At that time, Gazprombank's Vice President Yekaterina Trofimova said that besides placing subordinated Eurobonds, the bank also plans to raise up to $1 billion in financing on the market in 2012. "There is no acute need for refinancing. According to the plan we can borrow up to $1 billion depending on the market situation," she said.
Sobol said that Gazprombank will probably enter the debt market in the second half of 2012.
The bank is due to redeem ruble bonds totaling 40 billion rubles in the second half of 2012.