Morning Commentary: Gazprom’s new notes slip below par; MashreqBank joins deal calendar

By Rebecca Melvin

New York, Feb. 7 – PJSC Gazprom’s newly priced 5.15% notes traded below their reoffer price on Thursday after the Russian natural gas producer priced $1.25 billion of the seven-year notes at par, according to a market source.

The notes were quoted 99.6 bid, 99.9 offered at the end of Europe’s trading session.

It was “not [trading] real well,” the London-based source said, citing the large deal size and low new issue premium as challenges for the new issue.

The source said estimates on new issue premium varied, with the most generous being 5 basis points to 10 bps.

“People are waiting for more to come,” the source said.

In the Middle East and Africa region, United Arab Emirates’ privately owned bank MashreqBank PSC announced that it is planning a new issue and has mandated banks and set a roadshow for a proposed U.S. dollar-denominated five-year benchmark offering of notes.

The fixed-income investor meetings are scheduled to begin Monday and wrap up on Thursday with stops in the UAE, Asia and Europe.

BNP Paribas, BofA Merrill Lynch, Commerzbank, MashreqBank, Nomura and Societe Generale are bookrunners for the Regulation S deal.

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