Gazprom Board Approves Perpetual Bonds

Copyright © 2023 Energy Intelligence Group All rights reserved. Unauthorized access or electronic forwarding, even for internal use, is prohibited.

Gazprom’s board of directors last week approved selling perpetual bonds for up to 150 billion rubles ($2.1 billion) to finance a nationwide program to boost Russia's natural gas penetration rate. The state-run firm may sell perpetual bonds, or bonds with no maturity stated, in rubles or in foreign currencies, it said. The first 30 billion ruble issuance may be placed next week. Gazprom will reportedly collect bids on Jun. 18. Proceeds from the bonds will finance projects to hook up new consumers to the gas grid. Gazprom plans to spend 526.1 billion rubles on the project in 2021-25, including 128 billion rubles in 2021. Moscow wants to reach a 100% “technically possible” domestic gas grid penetration rate by 2030, up from 71.4% as of the beginning of 2021. Gazprom believes that should give an extra boost to a growth in domestic gas demand and help it maintain the current market share at home. Gazprom tested perpetual bonds last year when it sold two issues in foreign currencies for $1.4 billion and €1 billion ($1.21 billion) for corporate purposes and optimizing its debt portfolio (NC Oct.15'20).

Wanda Ad #2 (article footer)
Novatek’s plans to build the new Murmansk LNG plant reflect Moscow’s sanctions-driven shifts in its gas export strategy.
Wed, May 31, 2023
Mumbai-based Gatik, which has become one of the largest shippers of Russian crude, may be unable to insure its ships after being struck off by US and UK registries.
Thu, Jun 1, 2023