Gazprom, is set to launch a commercial paper programme next week, with the first tranche likely to be $500 million.
Russia's most indebted company, energy giant Gazprom, is set to launch a commercial paper programme next week, with the first tranche likely to be $500 million, banking sources told. "Next week Gazprom begins meetings with investors. It will collect subscribers and will set the terms, volumes and yield of the tranche," a source said.
Another source said the first tranche of the paper -- a new way of financing for Gazprom -- would have a three-month maturity. "We will look at the real demand, the market now is great, but Gazprom doesn't really need money that badly. It just wants to try a new instrument of financing," the banker said.
Moody's assigned Prime-2 rating to the commercial paper programme, which is worth a total of $4 billion.
Last time Gazprom tapped the market was in July when it raised $1.275 billion and 825 million euros in heavily oversubscribed Eurobonds as investor appetite for emerging market risk brought a hefty cut in pricing rates.
Gazprom, whose debt is estimated at over $40 billion excluding Gazprombank, has over 20 outstanding bond issues.