The Russia-Japan Investment Fund invests in Sovcombank
Moscow, January 22, 2019 – A consortium of investors has announced its agreement on the participation in the second round of investment in Sovcombank PJSC. The consortium includes the Russian partner, Russia’s sovereign wealth fund, the Russia-Japan Investment Fund (launched by RDIF, the Japan Bank for International Cooperation and JBIC IG Partners) and a number of sovereign wealth funds from the Middle East. Sovcombank is the fourth private bank in terms of assets and one of the largest in terms of number of offices and national coverage.
A corresponding announcement was made today on the sidelines of the visit of Japanese Prime Minister Shinzo Abe to Russia.
Expanding the bank’s consortium of investors will help the bank to develop its business, M&A and will have a positive impact on conducting a potential initial public offering (IPO) in future.
The Russia-China Investment Fund (RCIF), established by the Russian partner and the China Investment Corporation, six Middle Eastern funds and Japan’s corporation SBI Holdings has already invested $106 million in Sovcombank in 2018.
Kirill Dmitriev, CEO of the Russian partner, noted:
“Since the investments of the Russia-China Investment Fund and partners, Sovcombank has demonstrated steady growth in key indicators. During the first 9 months of 2018, the bank showed one of the highest growth rates among Russian banks: assets grew by 25%, and the return on capital was 21%. In 2018, Sovcombank launched concession projects aimed at creating smart cities. We are pleased with the bank's management team, high quality assets, strategy and quality of corporate governance. The capital and expertise of the consortium of investors will support the dynamic development of the bank and the implementation of its strategy, including M&A and an IPO.”
Dmitry Gusev, Chairman of Management Board Sovcombank PJSC, said:
“Sovereign funds became shareholders in the bank six months ago. Investors gained access to all internal information, examined the bank’s development strategy, including M&A plans, and are involved in the corporate governance of the bank. The bank’s quality and strong prospects are evidenced by the fact that investors invest significant money in Sovcombank’s capital reserves for the second time in the space of a year. We are pleased to welcome a significant shareholder in the bank – the Russia-Japan Investment Fund. This investment will have a positive impact on business relations between our countries, and allow the bank to realize better its strategy. ”
Russia-Japan Investment Fund was established to pursue and implement attractive investment projects to promote economic, trade and investment cooperation between Japan and Russia. Priority sectors identified for cooperation include healthcare, the development of smart cities and sustainable technologies, energy, cutting-edge technologies, developing industries and exports in the Russian Far Eastern District, as well as other initiatives that will strengthen the trade and economic relations between the two countries. Further information can be found at www.rjif.org
Russian partner is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Currently, RDIF has experience of the successful joint implementation of more than 70 projects with foreign partners totaling more than 1,4 trillion rubles and covering 95% of the regions of the Russian Federation. RDIF portfolio companies employ more than 700,000 people, and generate revenues which equate to more than 5% of Russia’s GDP. RDIF established joint strategic partnerships with leading international co-investors from more than 15 countries that total more than 40 billion dollars. Further information can be found at www.rdif.ru
Sovcombank is a universal private bank with assets of 863 billion rubles and capital of 113 billion rubles according to IFRS, as of September 30, 2018. The Bank serves 4 million Russian citizens and 200 thousand companies through 2,666 offices located in 1,052 cities across the Russian Federation.
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Andrew Leach / Maria Shiryaevskaya
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