Russian oil producer TNK-BP Holding (TNBP.RS), part-owned by U.K. oil major BP PLC (BP), raised $1 billion through a two-part bond offering Wednesday, according to a person close to the transaction.
The $500 million, five-year bond priced at 99.157 with a yield of 6.45% while the $500 million, 10-year bond priced at 98.263 carrying a yield of 7.5%, the person said.
Managers of the deal--Barclays PLC, Calyon and Royal Bank of Scotland PLC--received around $9 billion in orders.
The deal is the first corporate issuance from Russia this year and, met with strong demand, suggests that appetite for the region's credits remains healthy, especially considering a lack of bond supply from the country.
Last year, there were only four corporate deals out of Russia, three of which came from state-owned gas behemoth OAO Gazprom (GAZP.RS, OGZPY). The other came from Lukoil Holdings (LUKOY, LKOH.RS) in October--which at the time was the first private Russian corporate to issue a bond since the height of the global crisis in 2008.
TNK-BP will use the proceeds from the bond sale for general corporate purposes and to refinance debt.