Despite scattered apprehensions about the structure, Russia's first future flows securitization was a genuine blowout, sending dealmakers a strong sign that investors are ready for more ABS from the country. Upsized by US$250 million to US$1.25 billion, Gazprom's export-backed paper yielded 7.201% and the book was four times oversubscribed, according to a source close to the deal. Pricing reportedly came 10 basis points outside the Russian curve. That stunned observers who had predicted a steeper discount, given the oceanic liquidity of Russian paper.

The transaction had a legal final maturity of 16 years and an average life of 7.4 years. Morgan Stanley, Merrill Lynch and ABN AMRO were joint bookrunners.

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