By Jason Corcoran in Moscow
Russian oil giant Lukoil has returned to the debt capital markets for the first time in 18 months yesterday with a bumper $1.5bn Eurobond deal arranged by Barcap, Royal Bank of Scotland and ING.
Lukoil priced two tranches of debt, maturing in five and 10 years. The five-year tranche, worth $900m, priced at a coupon of 6.375%. The $600m, 10-year tranche priced at a coupon of 7.25%.
The deal is a concrete sign that the debts markets for Russian issuers have been ripped open after Western banks closed credit lines last year following concerns over Russian state GDP and debt.
The mandate for Barcap is a shot in the arm as it begins a make a fresh assault on the Russian investment banking market.
Bob Foresman, who has only recently stepped down as one of Rencap’s most senior bankers, will arrive soon in Moscow to lead Barcap’s Russian operation.
The bank is attempting to build out from its from traditional stronghold in debt capital markets into equity and M&A.
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