UPDATE 4-Gazprom in "super deal" for oversubscribed bonds

* Gazprom raises $1.275 billion, 825 million euros

* Pricing on euro bond over 0.5 pct points below guidance

* Pricing on dollar bond full pct point lower vs April

* Appetite for risk brings oversubscription

(Adds spreads to UST in para 8)

By Dmitry Sergeyev and Oksana Kobzeva

MOSCOW, July 22 (Reuters) - Russia's Gazprom (GAZP.MM) raised $1.275 billion and 825 million euros in heavily oversubscribed bonds on Wednesday as investor appetite for emerging market risk brought a hefty cut in pricing rates.

Russia's gas export monopoly and the country's most indebted firm priced the 5-year dollar bond at 8.125 percent, down from the initial 8.5 percent. The 5.5-year euro tranche was also priced at 8.125, down from the initial 8.75 percent.

Analysts said the Gazprom deal is benefiting from rising appetite for emerging markets risk from Western investors and from a lack of Russian borrowers tapping the market.

"The market is reviving ... there is a huge inflow of fresh money to investment funds. And Gazprom is quite well positioned as far as there is demand for the Russian assets," said Alexander Kudrin, analyst at Troika Dialog brokerage.

A banking source close to the placement said the order book for the dollar tranche alone was over $6 billion. "It is a super deal," he said.

Gazprom, whose debt is estimated at over $40 billion excluding Gazprombank, has over 20 outstanding bond issues <0#RUEUROSAO=>.

Last time it placed a Eurobond was in April when it sold $2.25 billion worth of a 10-year paper pricing the deal at 9.25 percent, more than one percentage higher than Wednesday.

The bond then carried a 3-year put option and the spread over the three-year U.S. Treasury note was 795 basis points while on Wednesday the spread over the five-year Treasuries <0#USBMK=> was around 570 basis points.

By comparison, Citigroup (C.N) on Monday sold $2.5 billion of 30-year nonguaranteed senior bonds at a coupon of 8.125 percent [ID:nN20583493]. Energy firm BG (BG.L) priced this month a 750 million euro 2013 bond at a coupon of 3.375 percent.

Unlike many Russian firms, Gazprom has not sought direct state help this year, although the country's top lender, state-run Sberbank SBER03.MM, has been Gazprom's most active lender since January.

Gazprom borrowed $11 billion in the first half of 2009, more than $4.5 billion of which came from Sberbank, while redeeming only $5.3 billion, it said in a bond prospectus to investors this week. [ID:nLK231893]

Many analysts have warned the company will face financial difficulties at the end of the year when prices of gas hit their lows as they catch up with oil prices with a lag of six to nine months.

Gazprom says its financial situation will remain stable although its core earnings have likely halved in the first quarter and it only hopes to generate positive cash flow in 2009 because of low prices and depressed exports. [ID:nLP493343]

Reuters consensus estimates put Gazprom's net profit at around $20 billion this year, down 9.5 percent from 2008. (Editing by David Cowell)

(Writing by Dmitry Zhdannikov, + 7 495 775 12 42, dmitri.zhdannikov@reuters.com)