Support The Moscow Times!

VTB Gets Sovereign Backing

VTB attracted a new class of sovereign investor into Russia with a $3.3 billion share sale, whose proceeds the state-controlled bank pledged to invest in expanding its share of the domestic market.

Russia's second-largest bank is offering stock at a third of the price at which it floated six years ago, reflecting the impact of the global crash, a troubled acquisition and a costly push into investment banking.

The deal was covered before subscriptions were due to open, VTB said on Monday, with backing from sovereign funds from the energy-rich states of Norway, Qatar and Azerbaijan, described by CEO Andrei Kostin as "committed, long-term investors".

Kostin had presided over an initial public share offering in 2007 and a subsequent stock offering in 2011 that helped send VTB's share price lower, but after months of financial diplomacy the urbane former diplomat has managed to reel in big-ticket investors.

(Reuters)

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more