Gazprom to float bonds in October

Russia's gas monopolist Gazprom decided to float bonds worth 5bn rubles (about $158m) in the second half of October 2002, Pavel Mamai, Vice President of the analytical department of the Renaissance Capital investment company, reported to RBC. He noted these terms were preliminary but analysts from Renaissance Capital hoped to take all necessary measures for preparing the issue together with Gazprom in the specified time. The Vice President also recalled that Renaissance Capital and St. Petersburg Industrial and Construction Bank would act as organizers of the issue. The bond issue prospectus is being prepared for registration in the Russian Federal Commission for Securities now. Gazprom bonds will be issued for three years. The analyst did not specify parameters of the issue, explaining they were still being coordinated.

Earlier, coupon payments on the new bonds were expected to be made every 180 days at 7.5 percent of the nominal value. Gazprombank is expected to act as a paying agent of this issue.

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