Riding the wave of foreign investor demand for Ukraine bonds, Naftogaz placed two tranches of Eurobonds for the equivalent of $1 billion, at rates just above the sovereign.

Riding the wave of foreign investor demand for Ukraine bonds, Naftogaz placed two tranches of Eurobonds for the equivalent of $1 billion, at rates just above the sovereign. On Friday, Naftogaz placed €600 million of Eurobonds for five years at 7.125% and $335 million for 7.375% for three years. Bids exceeded supply by a factor of 2.5. Bookrunners were Citibank and Deutsche Bank. Much of the money is to be spent on buying natural gas this summer to fill storage tanks in advance of negotiations this September with Gazprom to renew the Russian gas transit contract that expires Jan. 1.