28 Oct 2010 18:26

Lukoil's ten-yr notes could yield 6.25% - source

MOSCOW. Oct 28 (Interfax) - Lukoil's proposed ten-year Eurobonds could yield around 6.25%, a financial market source told Interfax.

The bid book might open October 28, the source said.

Lukoil President Vagit Alekperov said on Tuesday that the company planned to raise about $1 billion in a Eurobond placement to finance current operations and refinance short-term debt.

Lukoil is holding a road show for a dollar-denominated Eurobond offering in the United States, United Kingdom and Asia on October 25-28.

Lukoil has mandated The Royal Bank of Scotland, Barclays Capital and ING to arrange the meetings with investors.

This will be a 144 a/Reg S placement.

Lukoil last placed Eurobonds this time last year, selling $1.5 billion in two tranches: a five-year tranche of $900 million at 6.5% pa and a 10-year tranche of $600 million at 7.375%. The organizers then were also Barclays, ING and RBS.