Gazprom plans to continue diversifying its sources of financing in the future, as well as reducing the cost and increasing the length of loans. The gas giant's press office today revealed that this policy was agreed on yesterday evening by Gazprom Chairman Alexei Miller and Morgan Stanley Int. Chief Executive Stephen Newhouse. The two men examined the results of collaborative work between the companies on attracting financing and discussed prospects for future cooperation.
Morgan Stanley was the joint coordinator and manager of a bond issue by Gazprom in February 2003. The USD 1.75-billion bond issue was a success, being taken up by US, European, and Asian institutional investors. Gazprom's press office highlighted the fact that the deal was the largest ever corporate bond issue by a company from a developing market. The bond's terms (a ten-year redemption period and a relatively low rate of return of 9.625%) were seen by the investment community as an 'unreserved success for Gazprom and its financial consultants.' Experts noted the 'successful marketing of the deal, as well as the new level of openness and transparency surrounding it.'
The company's bonds were in record demand and the original plan to issue a USD 750-million bond had to be changed. 50% of the demand was from US investors, 30% from European companies, and 10% from Asian and Russian investors.