Tyumen Oil could launch a $1 billion eurobond before the end of the year, its CFO revealed yesterday.
Iosef Bakaleynik, Tyumen's CFO, said the Russian oil producer could issue another Eurobond after its delayed $400 million Eurobond issue in November last year.
Speaking at Euromoney's twelfth annual Global Borrowers Forum in London, Bakaleynik said the low interest rates and longer maturities Eurobonds offered were attractive. He pointed out that debt raised through project finance matured on average in only three years, compared with a Eurobond's seven.
"We may do another Eurobond up to $1billion before the year end," Bakaleynik told delegates. "This is an opportunity to lock in at low rates for a long time".
A Eurobond issue could be warmly received in the markets. In February Tyumen said it would merge its Russian assets with BP's to create Russia's third biggest oil producer: days later Gazprom, the Russian gas monopoly, successfully placed a $1.75 billion bond - the biggest-ever emerging market corporate Eurobond