MOSCOW - Gazprom said on Monday its subsidiary Gazprom Capital will issue new rouble-denominated bonds to replace a sterling-denominated issuance worth 850 million pounds ($970.02 million) due in 2024.
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The original Eurobond was placed in 2017 and carried a coupon of 4.25%. The bond last traded at 51 pence per pound with a yield above 55%, unchanged on the day, with markets closed in London on Monday.
Dollar-denominated Gazprom bonds maturing between 2026 and 2031 were down between 1 cent and 4 cents on the day, trading at 51 cents or lower.
President Vladimir Putin signed a law in July that gives companies until the end of 2022 to issue bonds in a simplified procedure on the local market.
Proposed by the central bank, the "replacement bonds" would be a substitute for Eurobonds that Russian companies can no longer service due to sanctions connected to Moscow's actions in Ukraine.
($1 = 0.8763 pound)