Gazprombank Sells $1 Billion Perpetual Bond In Stream of European Issuance

   By Erin McCarthy 
 

Russia's Gazprombank (GZPR.RS) sold a $1 billion perpetual bond Friday, capping a strong week of issuance from European countries and companies.

The offering, which is callable in 5.5 years, priced at par to yield 7.875%, according to a banker familiar with the deal. There was strong demand for the deal, with order books totaling more than $12 billion.

Credit Suisse Group, HSBC Holdings PLC, Goldman Sachs Group Inc. and Gazprombank were the lead managers on the deal. The issuer is rated Baa3 By Moody's Investors Service Inc. and BBB- by Standard & Poor's Corp.

Gazprombank's offering came with a hefty stream of new issuance from emerging European countries and companies.

Also Friday, Turkish brewer Anadolu Efes Biracilik ve Malt Sanayi AS (AEFES.IS, AEBZY) tapped the debt markets Friday with the first investment-grade corporate bond ever to be issued out of Turkey. It sold $500 million of 10-year fixed notes at 98.761 to yield 175 basis points over comparable Treasurys. The bond carries a coupon 3.375%.

Slovenia sold its first dollar bond since 1996 Friday, issuing $2.25 billion in 10-year notes, with investors' orders reaching more than four times the size of the issue.

--Ben Edwards contributed to this article.

Write to Erin McCarthy at [e-mail]