Gazprom has postponed allocation of $1 billion of European bonds until the end of 2011 due to market conditions, RIA Novosti reports.
Gazprom ECP S.A. (SPV – a company of Gazprom) had a road-show of European obligations on October 3-5, allocated according to the European Commercial Papers program (ECP). UBS is the organizer of meetings with investors. The bonds are to bring dividends of about 4.5% annually. The bids for ECP were to end on Thursday.
Gazprom’s latest entrance to the market of foreign credits was seen in November 2010, when $1 billion-worth of bonds were allocated with a rate of 5.092% annually. Сredit Agricole Corporate, Investment Bank and J.P. Morgan Securities Ltd. were organizers of the deal.
Gazprom adjusted the budget in September, raising the loan plan by 66% from 90 billion to 150 billion rubles. The initiative is the result of a need to finance investment programs. Debt burden indicators will remain at about 0.8%, according to the foreign loan EBITDA.
The investment program for 2011 was increased from 816.363 billion rubles to 1.277 trillion rubles.
