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)

Read more

Independent journalism isn’t dead. You can help keep it alive.

The Moscow Times’ team of journalists has been first with the big stories on the coronavirus crisis in Russia since day one. Our exclusives and on-the-ground reporting are being read and shared by many high-profile journalists.

We wouldn’t be able to produce this crucial journalism without the support of our loyal readers. Please consider making a donation to The Moscow Times to help us continue covering this historic time in the world’s largest country.