Moscow (Platts)--27Jun2014/751 am EDT/1151 GMT
Russian gas giant Gazprom is interested in attracting Asian investments through listing on the Hong Kong Stock Exchange and a listing upgrade at the Singapore exchange, and plans a "symbolic" bond issue in offshore yuan, Andrei Kruglov, head of Gazprom's finance and economics unit, said Thursday.
The company is also ready to consider using the Russian rouble and the yuan in its recently signed major pipeline supply deal with China National Petroleum Corp., Kruglov said at the company's media briefing.
"We have made an important step by getting listed on the Singapore Stock Exchange; our next step under consideration is the listing upgrade," Kruglov said.
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"We are also in talks over getting listed at the Hong Kong Stock Exchange -- this will give us access to a wide pool of investors from [mainland] China and Hong Kong," he said, adding that the company views the prospects of getting listed in Hong Kong as very attractive considering the plans to create mutual stock market access between mainland China and Hong Kong.
In April, the China Securities Regulatory Commission and the Securities and Futures Commission approved the development of the so-called Shanghai-Hong Kong Stock Connect, which will enable investors to trade eligible shares listed on the other's market through local securities firms or brokers.
Gazprom does not expect to get listed in Hong Kong before the autumn, Kruglov said, as the Russian financial regulator, the central bank, first needs to sign a memorandum with the International Organization of Securities Commissions (IOSCO).
The memorandum is the key pre-requisite for Russian companies' listings in Hong Kong.
Russia's central bank expects to sign the agreement in October, according to Russian media reports.
ASIA PACIFIC FOCUS OF GROWTH
Gazprom is also looking into issuing a "symbolic" bond denominated in offshore yuan and Singapore dollars, Kruglov said.
Additionally, Gazprom is looking to receive a rating from one or more Chinese rating agencies, Kruglov said.
"Receiving a rating [from Chinese rating agencies] is necessary for Chinese funds to make investments [in Gazprom,]" Kruglov said on the sidelines of the media briefing.
Last week, Gazprom's global depositary receipts were listed on the Singapore Stock Exchange.
The Asia Pacific region has been the focus of Gazprom's growth and diversification strategy for a number of years and the listing clearly demonstrates the importance of Singapore and the wider region, a spokeswoman for the company said at the time.
The listing in Singapore is Gazprom's first in an Asian market. Its shares and American Depositary Receipts are currently traded in Moscow, St Petersburg, London, Berlin, Frankfurt as well as the US.
OPERATIONS IN ROUBLE, YUAN
When asked if Gazprom is considering using the Chinese yuan and the Russian rouble in payments within its major pipeline gas supply contract with China, Kruglov said it could be an option.
"We are ready for yuan and rouble transactions [within the framework of the contract], and see no additional risks, except minor transactional costs," he said.
Kruglov's statement comes barely a month after Gazprom signed a 30-year deal to supply China with 38 billion cubic meters/year of natural gas starting 2018-2020, depending on the pace of infrastructure construction.
Although the parties do not comment on the contract price, Gazprom said the total value of the deal is around $400 billion.
The supplies will reach China through the 61 Bcm/year Power of Siberia line stretching from East Siberia to Russia's Pacific coast.
Gazprom is also eyeing more LNG exports to Asia with the proposed Vladivostok LNG project and a planned expansion at the Sakhalin 2 LNG project.
--Dina Khrennikova, dina.khrennikova@platts.com--Edited by Jonathan Fox, jonathan.fox@platts.com