6 Nov 2009 19:06

Gazprombank to start non deal road show in London Nov 10

MOSCOW. Nov 6 (Interfax) - Gazprombank will start a non deal road show in London on November 10, a source in banking circles told Interfax.

Presentations like this do not envisage bond placements, but the source said this could still result in one.

Royal Bank of Scotland and Barclays are organizing the event.

A Eurobond market source said the bank might be looking to raise long-term capital: Gazprombank cannot raise funds for more than five years in the domestic market, but it could place ten-year Eurobonds. "The main problem for banks is insufficient long-term funding," the expert said.

Gazprombank has six Eurobonds outstanding, and is due to redeem three of them in 2010: 10 billion rubles in loan participation notes (LPN) in February; $700 million in LPN in April; and CHF 500 million in August.

The bank was Russia's third largest by assets, according to the Interfax-100 ranking at the end of the third quarter of 2009.