MOSCOW, October 30 (RIA Novosti) - Sovfintrade, a subsidiary of Gazprombank, is planning to conduct an initial public offering (IPO) of mortgage bonds in November 2006, a Gazprombank vice president said Monday.
Igor Rusanov said the bond issue is organized by Gazprombank, while the coupon interest rate will be fixed shortly before placement, when a pool of underwriters will also be chosen.
The bank said earlier a total of 3 billion rubles ($110 million) worth of bonds will be floated.
Gazprombank, a subsidiary of Russia's energy giant Gazprom [RTS: GAZP], is Russia's third-largest bank by assets (738.7 billion rubles, or $27.3 billion as of October 1, 2006).
