Source Pravda.Ru

Analysts optimistic about Gazprom's plans on Eurobonds

The floating of ten-year Eurobonds, planned by Gazprom, is expected to be successful, analysts reported in an interview with RBC. According to experts from the NIKoil investment company, preliminary results of Gazprom's roadshow testify to these forecasts. Currently, the gas giant has already been four times oversubscribed. The bond yield is expected to reach 9.5 to 9.75 percent by the time of redemption. The final price for Eurobonds is going to be set on February 22.

Analysts noted that a noticeable volume of Gazprom's debt had a negative impact on the company's shares in the second half of 2002. This year, Gazprom is going to refinance its short-term debts worth $2m, which will result in a positive tendency on the market of Gazprom shares. At the same time, positive news could be over after the floating of bonds and this may lead to a downward correction after an upsurge in Gazprom shares observed over the past several days.

According to Gazprom Financial Director Boris Yurlov, they are considering the possibility of floating Eurobonds worth $1.25bn instead of $1bn as it was planned earlier.

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