RDIF co-investment consortium confirms plans for two agriculture and food production investments

Press release, 10.11.2016

Moscow, November 10, 2016 – The Russian Direct Investment Fund (RDIF), Mubadala Development Company (Mubadala) and other investment funds have confirmed plans for their interest in two potential investments in the Russian agricultural and food production sectors.

The consortium has agreed to deal terms for an investment in AFG National, Russia’s leading vertically integrated producer and distributor of rice. The company is also successfully developing capacity within the fruit and vegetables growing sector. Upon close, the investment will be up to 9 billion rubles, with funds used by AFG National to increase the volume of agricultural production, expand the land bank, construct agricultural infrastructure and to extend the product line and develop new brands.

Separately, RDIF, Mubadala and other investment funds have signed a Memorandum of Understanding to jointly evaluate a co-investment opportunity of approximately 10 billion rubles in EFKO Group, the largest holding company in the market of vegetable oil and fat products of the Eurasian Economic Union and one of the leading food manufacturers in Russia. EFKO is among the three largest agricultural companies in Russia and owns Russia's only deep-water sea terminal for transshipment of vegetable oils, in the port of Taman, which allows it to be the largest export-import operator on the vegetable oil market in Russia. The proceeds of this investment will be used to finance the Group’s long-term growth, including expansion into the CIS, Middle Eastern and Asian markets.

RDIF and Mubadala established their co-investment partnership in 2013, which predominantly focuses on long-term investment opportunities across a range of industry sectors, acting as a catalyst for direct investment in Russia. Since formation, the partnership has made over 15 co-investments in sectors including infrastructure, mining, logistics, retail, telecommunications and energy.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said: “Russian agriculture has huge development potential and is attractive to foreign investors due to the high growth rate in the domestic market and exports. The potential investments that RDIF and its international partners have confirmed interest in – the two leading Russian agro-industrial companies – will support the development of AFG National and EFKO, allowing geographic expansion through the launch of new businesses at home and abroad.”

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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 rdif.ru

Mubadala Development Company - established and owned by the Government of Abu Dhabi. The company’s strategy is built on creating partnerships and making long-term, capital-intensive investments that deliver strong financial returns and tangible social benefits for the people of the Emirate of Abu Dhabi, contributing to the growth and diversification of its economy. Mubadala manages a multi-billion dollar portfolio of local, regional and international investments, partnering with leading global organizations to operate businesses across a wide range of industry sectors. These include aerospace, semiconductors, metals and mining, oil and gas, renewables, information communication technology, healthcare, real estate and infrastructure, and the service industry. For more information about Mubadala please visit www.mubadala.com

EFKO Group of companies - the leader of the Russian oil and fat industry, one of the three largest companies in the agro-industrial complex of the country, EFKO is in the list of the 100 largest private companies in Russia, according to Forbes. The company is also one of the backbone enterprises of the food industry, affecting the food security of the Russian Federation. EFKO is the leader of the market of food ingredients used in confectionery, bakery and other food industries, and is one of the leading manufacturers of mayonnaise, vegetable oil, ketchup, milk and milk products, including products under such well-known brands as Sloboda and Altero, as well as a major producer of feed ingredients for livestock and poultry. The company's products are exported to more than 40 countries around the world. The production assets are located in Belgorod, Voronezh, Sverdlovsk and Moscow regions, Krasnodar and The Republic of Kazakhstan. Company strategy is aimed at profitable growth, strengthening of market positions and expanding geographical presence. https://efko.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