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Gazprom set to close book on bonds

Russian gas export monopoly Gazprom will close the books on two bond issues worth a combined 15 billion roubles ($482.5 million) on 26 June.

Gazprom, the biggest borrower in Russia, is placing 10 billion roubles and 5 billion roubles of bonds with one-year and two-year put options, respectively, according to a term sheet obtained by Reuters.

Yields for the bonds, maturing in 2012 and 2014, are seen in the range of 13.5 to 14% and 13.75 to 14.5%, respectively.

Investors returned to the Russian fixed-income market after the rouble hit its strongest level since January, helped by high prices for oil, Russia's key export commodity.

Gazprom picked Gazprombank and Citi to run the deal. Analysts have said the gas monopoly decided to take advantage of drastically improved market conditions.

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