Gazprom Seeking Short-Term Debt Amid Market Rout: Russia Credit

Bloomberg reported that OAO Gazprom (MCX:GAZP) is planning to raise short-term funds outside Russia for the first time in almost a year.

The market news is quoted as saying:

The world’s biggest natural-gas producer will meet investors in Switzerland from Oct. 3 and may sell dollar- denominated euro commercial paper, according to a person with knowledge of the plans. Moscow-based Gazprom’s July 2013 dollar bonds yielded 5.3276 percent on Sept. 27, the highest level since June 2010. They traded at the biggest premium to Petroleo Brasileiro SA debt in 15 months the previous day, data compiled by Bloomberg show.

Gazprom is looking at shorter-term paper as concern the world is headed for recession sent average yields on corporate debt in developing nations up 80 basis points this month, the biggest jump since October 2008, according to JPMorgan Chase & Co.’s Corporate EMBI Index. The government canceled an auction of 10 billion rubles of four-year bonds this week, the second debt sale it’s pulled in a row, after yields soared to a record.

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