Placement of RussNeft Bonds Set for 16th December, Lead Bank Anticipates Nearly 9% Coupon Rate.
Placement of RussNeft debut bonded debt to 7 billion rubles is set for the 16th December, the lead bank anticipates that the coupon rate will be nearly 9 per cent, said a representative of Alfa Bank, leading the loan.
“We hope that the yield will be attractive for investors being nearly 9 per cent”, said the bank representative.
Earlier the Board of Directors of oil and gas company RussNeft made a decision on the placement of the first bond issue to the amount of seven billion rubles before the end of the current year. The bond maturity is set as 1820 days. The price of placement is nominal (1,000 rubles).
The bonds are placed in order to attract long-term financing of investment projects specifically meaning expansion of resource basis, development of existing enterprises and restructuring the existing credit liabilities.
RussNeft was founded three years ago by Mikhail Gutseriev, and now it is an aggressively growing oil company of Russia, structuring 25 producing entities, a transport company and Moscow’s second largest network of gas-filling stations. RussNeft’s total recoverable reserves of hydrocarbons exceed 600 million tons, its annual oil output being nearly 15 million tons.