MOSCOW, May 23 (RIA Novosti) - Gazprom (RTS: GAZP) may issue ruble-denominated bonds and Eurobonds during 2006, the head of the Russian energy giant's securities operations department said Tuesday.
"Preliminary preparations for issuing both ruble bonds and Eurobonds are underway, but no final decisions have yet been reached," Andrei Orlov said, adding that he was sure the company would offer the debt market a new bond issue in the near future.
The share of ruble debt in Gazprom's borrowing portfolio is currently 10%, and the company has no plans to increase this share, he said.
One barrier to increasing the ruble share of the company's debt is that it is impossible to borrow enough on the domestic market, Orlov said. Also, terms to maturity are generally between three and five years in Russia, and "over-paying for experiments with longer-term securities is not sensible."
Borrowing on the forex market remains cheaper, and the procedure for issuing ruble bonds is still drawn-out and difficult, Orlov said.
