* Yield set at 2.95%
* Peak demand reached $4 bln -Gazprombank
* Washington has imposed sanctions against Nord Stream 2 (Changes sourcing to Gazprombank, adds comments)
MOSCOW, Jan 20 (Reuters) - Russian gas giant Gazprom is placing 8-year Eurobond worth $2 billion, Gazprombank said on Wednesday, amid strong demand, an indicator that investors saw limited risk from sanctions pressure on the Nord Stream 2 project.
Gazprom, which is leading the $11 billion gas pipeline project from Russia to Germany, has been out on the market for a U.S. dollar Eurobond issue of a benchmark size, or no less than $500 million.
According to Denis Shulakov, first vice president at Gazprombank, joint global coordinator and bookrunner of the Eurobond, the yield of the issue on Euronext Dublin exchange has been set at 2.95%.
Its initial yield guidance for the issue had been seen at 3.25-3.375%, according to IFR, the financial markets analytical service run by Refinitiv.
The yield guidance was later narrowed to around 3.125% and further to 2.9%-2.95% as demand for the upcoming issue exceeded $3.75 billion during the book building, a financial market source told Reuters.
Gazprombank said the demand reached $4 billion at its peak, while demand from international investors, including from the United States, Great Britain, Switzerland and the Middle East, exceeded 75% of the book.
In the Eurobond prospectus seen by Reuters on Tuesday, Gazprom warned of the risks that the Nord Stream 2 gas pipeline project may be suspended or scrapped amid political pressure.
The United States this week sanctioned one of the Russian vessels destined to finish the pipe-laying works under the sea, earlier having warned of more sanctions to come.
“The imposition of any additional sanctions is negative for company sentiment at this stage, but in our baseline scenario we anticipate that the project will be completed,” Aton brokerage said in a note on Wednesday.
Overall, external markets are favouring Russian assets amid rising oil prices, on Tuesday allowing Sovcombank, one of the country’s top private banks, to raise $300 million at a 3.4% yield via the 4-year Eurobond and demand at over $700 million.
Moscow’s Domodedovo, which owns and runs the second largest airport in Eastern Europe by traffic, is also out to the market this week with 7-year U.S. dollar Eurobond, with funds to be used to buy some of its outstanding notes due in 2021 and 2023.
Gazprom last tapped the market in October, raising $1.4 billion in perpetual bonds at a yield of 4.6% and another 1 billion euros at 3.9%. It plans to raise a total of 512 billion roubles ($7 billion) both in Russia and abroad this year. (Reporting by Katya Golubkova, additional reporting by Elena Fabrichnaya, Oksana Kobzeva, Tatiana Voronova and Vladimir Soldatkin; editing by Louise Heavens and Bernadette Baum)
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