RDIF and the Bank of Russia announce join efforts to create a fund of non-core assets of credit institutions
St. Petersburg, May 24, 2018 - The Russian Direct Investment Fund (RDIF, the sovereign wealth fund of the Russian Federation) and the Central Bank of the Russian Federation (Bank of Russia) have signed a cooperation agreement to ensure the growth of Russia's trade, economic and investment potential.
A priority area of cooperation will be the participation of RDIF in a project to create a fund (bank) of non-core assets of credit institutions (the "Fund"). This is currently being formed by the Bank of Russia on the basis of the assets of three banks undergoing the financial recovery procedure: Bank TRUST PJSC, ROST Bank JSC and AVB Bank JSC. The Bank of Russia is working on the possibility of RDIF participating in the activities of the created Fund by investing in its equity capital, as well as RDIF representatives sitting on the Board of Directors of the Fund in order to carry out efficient restructuring of assets and attract new investment into the Russian banking sector.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:
"Involving RDIF in the creation and management of a fund of non-core assets jointly with the Bank of Russia has a number of important advantages. The high level of RDIF expertise in asset management, as well as the experience of successful interaction with leading international investors, will contribute to improving the efficiency of the fund's activities. "
Vasily Pozdyshev, Deputy Chairman of the Bank of Russia, said:
"The Bank of Russia welcomes the participation of RDIF in equity and management of the Non-Core Assets Fund. RDIF has all necessary expertise in managing direct investments required for this project. The main goal of attracting RDIF to the management of the Fund is structuring of non-core assets, defining a strategy for entry to the market and attracting investors to the projects and assets of the Fund. This function assumes intensive involvement of RDIF in governance of the fund, therefore it is planned that representatives of RDIF will join Supervisory Board of the Fund. We expect that the participation of RDIF will increase returns from management and sale of non-core assets and will help attract strategic investors to the perspective assets on the Fund's balance."
Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund 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
For additional information contact:
Russian Direct Investment Fund
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
Andrew Leach / Maria Shiryaevskaya
Tel: +44 (0) 20 7796 4133