Lukoil launches sale of $1.5 bln in debt

NEW YORK, Oct 29 (Reuters) - LUKOIL (LKOH.MM), Russia's second largest oil producer, launched for sale $1.5 billion in five-year and 10-year debt on Thursday, according to market sources familiar with the details of the deal.

The company intends to sell $900 million worth of five-year debt with a yield of 6.50 percent, in-line with earlier guidance.

A 10-year tranche worth $600 million was launched with a yield of 7.375 percent, also in-line with earlier guidance.

The lead managers of the deal are Barclays Capital, ING and RBS.

LUKOIL is an investment-grade credit. Standard & Poor's and Fitch Ratings rate the company at BBB-minus, the lowest investment grade rating while Moody's Investors Service rates the company one notch higher at Baa2. (Reporting by Daniel Bases)