Russia's Gazprom to replace sterling-denominated bond

MOSCOW (Reuters) - Gazprom said on Monday its subsidiary Gazprom Capital will issue new rouble-denominated bonds to replace a sterling-denominated issuance worth 850 million pounds ($970.02 million) due in 2024.

The original Eurobond was placed in 2017 and carried a coupon of 4.25%. The bond last traded at 51 pence per pound with a yield above 55%, unchanged on the day, with markets closed in London on Monday.

Dollar-denominated Gazprom bonds maturing between 2026 and 2031 were down between 1 cent and 4 cents on the day, trading at 51 cents or lower.

President Vladimir Putin signed a law in July that gives companies until the end of 2022 to issue bonds in a simplified procedure on the local market.

Proposed by the central bank, the "replacement bonds" would be a substitute for Eurobonds that Russian companies can no longer service due to sanctions connected to Moscow's actions in Ukraine.

($1 = 0.8763 pound)

(Reporting by Reuters; Editing by Jan Harvey and Jonathan Oatis)