Published: May 4, 2010
Analysts suggest Russian gas group could raise new funds within months.
Russia’s Gazprom could tap the eurobond market for fresh funds within months, say analysts at RZB Group’s Raiffeisen Research.
In a note issued following Gazprom’s 2009 results, Raiffeisen Research says that the gas company has an investment programme of RUB800bn (US$27bn), which Raiffeisen believes can be covered by operating cash flows.
“Considering the company’s budgeted figure of about RUB90bn in new borrowings this year, we still think that Gazprom may revisit the eurobond market in 2010, possibly as early as H1, as soon as the market volatility calms down,” the note adds.
“As the drivers for that, we refer to the recent tightly priced sovereign issue as well as to this week’s business – a successful placement of NC KazMunayGas that managed to print a reasonably priced US$1.5bn paper even when the bearish market mood was in full play. Hence, the monopoly remains our usual suspect for issuing new public debt.”