RDIF and leading Middle Eastern funds to invest in Russian Helicopters

Press release, 16.06.2016

St. Petersburg, 16 June 2016– The Russian Direct Investment Fund (RDIF) and Middle East's leading investment funds have agreed to co-invest in Russian Helicopters. Under the agreement, the parties will invest up to $600 million in the company. Upon completion of the transaction, the investor consortium will hold up to 25% of the share capital of Russian Helicopters.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:

"Russian Helicopters is a world-leading manufacturer of helicopters. The company holds leading positions in some of the fastest growing market segments, producing some of the best examples of civilian and military helicopters. Russian Helicopters is a prime example of Russian producers competing successfully in the global tech markets, and it has supported Russia’s leading position in the global aerospace and defense industries. We believe that the investment from RDIF and its partners will enable Russian Helicopters to accelerate its investment program, reduce debt and strengthen its position in the international market, both in terms of sales growth, and in the after-sales and support services."

Sergey Chemezov, CEO of Rostec Corporation, said:

“Russian Helicopters has significantly grown its order portfolio in the last several years, producing new samples of equipment and modifying existing products. The company is at a mature stage of its development and is already successfully competing on the global markets. Its further growth can now be boosted by either technological partnerships or by attracting portfolio investors that will not only finance the company but also provide it with opportunities to conquer new markets. The size of the deal will be about USD 600m.”

Alexander Mikheev, CEO of Russian Helicopters, said:

“This deal will not only provide the company with financing but it will also enable Rostec and Russian Helicopters to expand and strengthen their positions in existing and new markets in the Middle East. Our helicopters are in high demand in Middle Eastern countries due to their impressive technical performance and a wide range of characteristics allowing them to operate in adverse weather conditions and remote areas.”

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Russian Direct Investment Fund (RDIF)was 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. Further information can be found atwww.rdif.ru

Rostec Corporation is a Russian industrial company created in 2007 to develop, manufacture and export high-tech products for civilian and military use. The company consists of 663 organizations, which also includes 32 direct management companies and 15 holding companies, 6 of which specialize in the manufacture of civilian products and 9 in the manufacture of products for the military and industrial sectors. Rostec’s portfolio includes such famous brands as AVTOVAZ, KAMAZ, Russian Helicopters, VSMPO-AVISMA and others. Rostec companies are located in 60 regions of Russia and export to over 70 countries. The revenues of the company were RUB 964.5bn in 2014. Further information can be found at http://rostec.ru/

Russian Helicopters(part of Rostec corporation) is one of the global leaders in helicopter manufacturing, and is the only designer and producer of helicopters operating in Russia. The company was established in 2007 and is headquartered in Moscow. The group comprises five helicopter manufacturing facilities, two design centers, facilities that produce and service helicopter parts, aviation maintenance plants and a servicing company providing after-sales support in Russia and abroad. The company’s clients include Russia’s Ministry of Defense, Ministry of Interior Affairs, Ministry for Emergency Situations, and other government entities, as well as aviation companies Gazprom Avia and UTair, and other Russian and international companies. In 2015, the group’s income under IFRS increased by 29.5% and amounted to RUB 220bn, and the company sold 212 helicopters. Further information can be found at www.russianhelicopters.aero

For additional information contact:

Maria Medvedeva
Russian Direct Investment Fund
Director of External Communications
Tel: +7 495 644 34 14, ext. 2141
Mobile: +7 964 726 17 73
E-mail: mm@rdif.ru

Andrew Hayes / Yulianna Vilkos
Hudson Sandler
Tel: +44 (0) 20 7796 4133