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. Last Updated: 07/27/2016

Gazprom Debtors Participate In 'Successful' Veksel Auction

Gazprom's debtors held a successful auction of their outstanding obligations Tuesday, and the Russian gas giant plans at least two more such auctions, said an official with the organizing bank.

A Moscow Veksel Bank representative confirmed to Reuters that the auction had taken place, but declined to give details about the results.

The bank was chosen by Gazprom as its agent to organize the auctions of so-called veksels, or promissory notes, issued to Gazprom by enterprises which lack the cash to pay their bills.

The bank official said additional auctions will be held March 25 and 31, and that all auction results would be released at a press conference in April. The starting price for bidding, the official said, was 100 percent of the face value of the obligation.

Analysts said before the auction that participants were each likely to auction a minimum of 100 billion rubles ($17.5 million) worth of debt.

Gazprom was owed roughly 55.8 trillion rubles by domestic customers at the beginning of 1997.

Veksels are actively traded in Russia as a sort of corporate debt, but are extremely risky as most are not guaranteed.