As U.K. Condemns Russia, Investors Pile Into Gazprom Bond Sale
- Most of demand for oversubscribed sale came from Europe
- Russian sovereign preparing to sell bond later this month
Just as Prime Minister Theresa May was spelling out the U.K.’s response Wednesday to the poisoning of a former spy on British soil, European investors were helping a state-owned Russian company do brisk business in the bond market.
Demand was so high for a 750 million-euro ($927 million) bond sale from Moscow-based Gazprom PJSC that the energy giant was able to cut its borrowing costs by knocking about 38 basis points off its yield. Most of the demand for the oversubscribed bond came from continental Europe, but there were also some buyers from the U.K., according to VTB Capital, which helped organize the sale.