RDIF and leading Middle Eastern funds invest in AFG National Agro Holding

Press release, 16.06.2016

St. Petersburg, 16 June, 2016– The Russian Direct Investment Fund (RDIF) and leading funds from the Middle East announce investment in AFG National, a vertically integrated agro-industrial holding. AFG National is a leading rice producer and distributor, which has also been active in agricultural projects contributing to import substitution in the vegetables and fruit-growing sector. The agreement was signed today during the Saint Petersburg International Economic Forum.

Under the agreement, RDIF and its partners will invest around 9 billion rubles on a parity basis. The proceeds will be used by the company to increase rice production, table potatoes, field vegetables and apples. The company will also use the funds to increase its land bank and build agricultural infrastructure as well as expand the product line and develop new brands.

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

"AFG National is one of Russia’s leading rice producers and distributors with considerable export potential. The company is also active in production of other crops and has been a significant contributor to the state-wide strategy of import substitution. Investment in the company, which will use some of the funds for non-organic growth, offers a unique opportunity to consolidate agricultural land suitable for rice cultivation in Russia, where there is currently a lack of modern rice irrigation systems."

Dmitry Arzhanov, Chairman of the Board of Directors of AFG National, said:

AFG National is actively participating in state projects for import substitution and agricultural land development as well as seed production. This investment testifies that we are on the right path. We continue to grow and expand into new business segments. It is not just the volumes but also the high quality of our produce that is of utmost importance to us. That is why we have been investing in technology and human resources as well as the broader industry development. We highly appreciate the state support of our business initiatives; it gives us confidence for the future. We are grateful to RDIF for their trust, and we will work even harder to ensure our cooperation is as efficient and mutually beneficial as it can be for the good of the industry, Russia and its citizens.

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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 at www.rdif.ru

AFG National is a large vertically integrated agro-industrial holding, operating under the “field-to-counter” principle. It holds leading market positions in rice production and packaged cereals segment with 22% and 18% market shares, respectively. The company produces around 220 product lines under its own and private trade labels, and boasts wide distribution network covering Russia, CIS, Europe and other regions. Since 2015, AGF National has also been successfully developing its vegetables business, growing table and seed potatoes and field vegetables that require irrigation, as well as planting superintensive apple-tree orchards.Further information at: http://afg-n.ru/

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

Natalya Tselischeva
AGF National
Head of the Press Office
Tel: +7 495 308 00 58, ext. 129
Mobile: +7910 101 24 49
E-mail: n.tselishcheva@afg-national.ru; press@afg-national.ru