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Transneft's debut bond sale will be priced today, Goldman says

OAO Transneft, Russia's state-owned oil-pipeline operator, will price its first-ever international bond sale today after receiving state approval last night.

„Government authorization has now been received -Transneft has all the approvals necessary to proceed with the launch,” Goldman Sachs Group Inc., which is managing the sale with Credit Suisse Group, said in a note to investors last night. Transneft is raising at least $1 billion to help build an oil pipeline from Siberia to Asia. The sale had been scheduled for completion yesterday. Due to the late state approvals, the banks will price the bond today at the market opening in New York, Goldman Sachs said. Investors must reconfirm their orders this morning, the Goldman note said. Moscow-based Transneft's investment-grade securities will be priced to yield about 55 basis points more than the dollar mid- swap rate, a benchmark for borrowing, according to the note. The bonds had initially been marketed at a yield premium of 60 basis points, the banks said. (Bloomberg)