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Gazprom mulls placement of undated subordinated bonds

The funds raised will be used to refinance the current debt burden, according to the company

MOSCOW, October 26. /TASS/. Gazprom is studying the possibility of placing the first undated subordinated ruble-denominated bond issue on the Russian market, the company said in a statement.

"Given the high interest of investors in hybrid instruments, Gazprom is exploring the possibility of placing the first undated subordinated ruble-denominated bond issue on the Russian market," the company said.

Earlier this month, for the first time in the history of the Russian financial market, Gazprom placed corporate undated subordinated Eurobonds on the international debt market.

The company attracted $1.4 billion and 1 billion euros (in total $2.575 bln) through the placement of Eurobonds. In total, 220 investors took part in the dollar-denominated bond issue and 170 investors bought the euro-denominated bonds. Investor demand amounted to more than $7.4 billion, which is a record for Eurobond placements of PJSC Gazprom since 2013.

The closing of the deal on the placement of the debut issue of Gazprom's subordinated perpetual Eurobonds in US dollars and euros took place on October 26.

"The funds raised will be used for general corporate purposes - first of all, to refinance the current debt burden, subject to all legal restrictions. Reducing the volume of borrowings is an important part of Gazprom's package of measures to improve financial stability amid a difficult external situation with prices for energy carriers in 2020," the company said.