15 Nov 2010 12:33

New Gazprom bonds could mature in over 5 yrs

HONG KONG. Nov 15 (Interfax) - The new Eurobonds for which Gazprom is launching a road show on November 15 could mature in upwards of five years, the Russian gas giant's head of department for financial markets, Pyotr Bakayev, told reporters.

"The final parameters will only be known when the meetings with investors are over, but in general we're planning bonds that mature in more than five years," Bakayev said on the sidelines of a conference for investors, organized by Renaissance Capital.

Gazprom is placing up to $1 billion in dollar-denominated bonds in one tranche, he said.

Gazprom might also issue euro short term notes before the year on one or possibly two tranches, depending how quickly the proceeds from the sale of Severenergia come in.

"Gazprom always needs short-term borrowed funds at the end of a year. These are then repaid in the first quarter of the following year using what remains on the company's accounts," Bakayev said.