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. Last Updated: 07/27/2016

Gazprom Floats Corporate Bonds

Gas monopoly Gazprom on Tuesday floated 3 billion rubles worth of corporate bonds for purchase by foreigners with proceeds from restructured GKO treasury bills.

The gas giant managed to sell off paper worth 139 million rubles, just over 5 percent of the issue, said Oksana Bestuzheva, deputy general director at program underwriter Gorizont. "We hope to place the full emission over the next five working days," she said.

Gazprom is placing the bonds at a 17 percent discount from their nominal price of 1,000 rubles. Therefore, annual interest on the coupons has been raised to 11.3 percent from the originally planned 5 percent.

Coupons on the four-year bonds will be paid off every six months and are hedged against ruble inflation.

Gazprom's issue follows a similar float by oil giant LUKoil and comes ahead of one by Tyumen Oil Co. The floats were meant to mollify foreigners who complained the state's scheme to revamp debt it froze last year was too harsh.