Russian state-controlled Gazprom's oil unit, OAO Gazprom Neft (SIBN.RS), is considering funding options after requesting financing proposals from banks, said people familiar with the situation Tuesday.
"They (Gazprom Neft) are keeping their options open. They could service their funding needs through either the bond or loan market or through both," one of the bankers said, highlighting that financing could be through domestic or international markets.
Gazprom Neft last tapped the international loan market in October with a $500 million, three-year loan priced at 500 basis points over Libor. Lead arrangers were Bank of Tokyo Mitsubishi, Nordea, RZB Austria, Societe Generale and Unicredit.
On bonds, the company last funded itself in the domestic market with an RUB8 billion ($265.3 million) seven-year bond in July priced at par with a coupon of 14.75%, according to data provider Dealogic.
Gazprom Neft declined comment.