Horizon CF – new opportunities

Creation and development of a market for Gazprom shares

Horizon CF experts played a key role in floating Gazprom shares on Russian stock exchanges and organising the debut issuance of Gazprom’s American Depositary Receipts (ADRs). With an underlying share price of USD 0.5 in the Russian market, the ADRs were priced at a fair value of USD 1.575. We developed a mechanism to divide up markets, preventing international investors from being able to buy up undervalued Gazprom shares. Gazprom was the first Russian company to be listed on the London Stock Exchange (LSE).

Launch of the Strategy Consulting practice

Over the years, a number of deals have been developed, structured and completed by this practice, the largest of which being the sale of 2.5% of RJSC Gazprom shares to Ruhrgas AG, the founding of Zarubezhneftegaz, the strategic alliance between Gazprom and Royal Dutch Shell, and the Wintershall–Gazprom deal to jointly develop the Achimov deposits at the Urengoyskoye oil and gas condensate field.

Debt Restructuring practice set up

The practice was set up to respond to the urgent needs of the Russian economy to restructure the debts of Russian enterprises, in particular those owed to Gazprom by its gas consumers. A scheme was developed to restructure the debts of CIS states consuming Russian gas.

Russian Debt Market practice set up

Gazprom’s debut rouble bond issue was successfully placed, with the coupon rate and par value pegged to fluctuations in the US dollar exchange rate. In its over 25 years of existence, Horizon CF experts have helped close deals raising more than RUB 250 billion in the Russian market for Russia’s leading companies, from Gazprom and Transneft to FGC UES and other major players.

International Capital Market practice set up

Gazprom’s debut eurobond issue was successfully placed. Horizon CF experts helped raise a total of over USD 50 billion through eurobond issues.

Russian Financial Consulting practice expanded

We advised subsidiaries of RAO UES of Russia on their secondary public offerings (SPOs) as part of a reform of this energy holding company. Horizon CF experts helped Russian companies raise a total of over RUB 9 billion through secondary offerings.

IR Consulting practice set up

Building on its long track record in financial consulting, as well as in engaging with Russian and international investors, investment banks, stock exchanges, and other financial market participants, Horizon CF became Russia’s first IR consultancy. As early as 2004, Horizon CF was appointed as joint corporate broker by Gazprom, where it continues to serve as an IR and ESG advisor to this day. Still, Horizon CF would only be officially included in the national occupation classifier as an IR specialist four years later in 2008.

Disclosure practice set up

To help public companies meet their disclosure requirements, a separate practice was set up to offer support and prepare public filings compliant with industry standards, Russian and international laws, and the requirements of stock exchanges and regulators, such as annual reports, issuer reports, sustainable development reports, integrated reports, annual financial reports (AFRs) for the London Stock Exchange (LSE), etc.

Corporate Governance practice set up

The quality of corporate governance is gradually becoming one of the most significant aspects (alongside operating and financial performance) for investors and shareholders to consider when investing in Russian companies. Horizon CF has been running regular corporate governance diagnostics since 2013, partnering with KPMG to launch the first project aimed at improving Gazprom’s corporate governance practices. These corporate governance diagnostic and improvement services have seen a steady increase in demand since 2014, with major names such as OGK-2, TGC-1, Mosenergo, and Bashneft all becoming our clients.

Development and diversification of the market for Gazprom shares

Horizon CF acted as a financial advisor for Gazprom’s listing on the Singapore Exchange (SGX), where the gas giant’s Global Depositary Receipts (GDRs) were listed for trading. Gazprom’s GDRs were the first securities to be listed on the SGX by a Russian issuer, and the move allowed the company’s securities to be traded almost 24 hours a day.

The IRCG concept: Horizon CF’s first step towards building an ESG consulting practice

In working towards the investment community’s current agenda, Horizon CF surveyed specialists with 22 leading international institutional investors to gauge the weight investors placed on corporate governance (CG) when considering investments in Russian companies. In our first step towards building an ESG consulting practice, we introduced the IRCG concept to the market, which means engaging the investment community on matters at the intersections of IR and CG. We continue to provide holistic ESG advisory services to Gazprom as part of our joint mandate with JP Morgan and Gazprombank to act as corporate broker.

IT Consulting practice expanded

Horizon CF’s methodological expertise in collating and disclosing information made us the ideal candidate to take part in a unique series of projects aimed at automating Gazprom’s reporting process. Horizon CF experts helped spearhead the development of the Automated Consolidated Reporting System, the analytical (management) reporting module, and the Automated Document Management System.

To enhance our IR Consulting practice supporting Russian companies in improving their corporate governance, Horizon CF joined the International Corporate Governance Network (ICGN).

ESG Consulting set up as a separate practice to encompass all of Horizon CF’s sustainability offerings

Horizon CF was appointed as an ESG advisor by Polyus and became the lead ESG advisor for Gazprom as part of its joint mandate with JP Morgan and Gazprombank to act as its corporate broker.

Horizon CF is a leading Russian ESG consultancy. Horizon CF is unlocking new opportunities for its customers through a partnership with CGI Russia, the Russian Chapter of the World Economic Forum’s Climate Governance Initiative, active across all G20 countries, including Russia.