Ruspetro sinks as it postpones bond offering

SHARES in Siberia-focused oil and gas explorer Ruspetro plunged yesterday as it said it would postpone its senior secured note offering.

Ruspetro said it would consider the bond sale at a later date. It gave no reason for the delay.

The proceeds from the placing were intented to replace Ruspetro’s existing debt facility with Sberbank, due to mature in April 2015.

Last month, the firm said it would launch the offering to strengthen its balance sheet, sending its shares on a sharp upward spiral.

“We have existing debt that doesn’t mature until 2015, so we have time, and we are able to be opportunistic in the bond market,” Dominic Manley, head of investor relations, said yesterday.

Shares closed down 15.69 per cent at 43p.