RDIF may invest in Central Bank's non-core asset fund, take seat on board of directors

Interfax, 24.05.2018

ST. PETERSBURG. May 24 (Interfax) - The Russian Direct Investment Fund (RDIF) and the Central Bank of Russia concluded a cooperation agreement during the St. Petersburg International Economic Forum (SPIEF) aimed at facilitating growth in Russia's trade, economic and investment potential, RDIF said in a press release.

RDIF will participate in the new fund's capital. Its stake has not been disclosed but, according to RDIF head Kirill Dmitriev, it will not be large.

RDIF's participation is important from the standpoint of managing the assets and finding synergies among them, Pozdyshev said.

One of the priority areas for cooperation is RDIF's participation in the project to create a fund of non-core assets of banks that is being formed by the Central Bank from the assets of three banks under financial rescue procedures: Bank Trust, Rost Bank and Avtovazbank, RDIF said.

The Central Bank is working on the possibility of bringing in the RDIF to participate in the activities of the fund by taking an equity stake, having an RDIF representative on the board of directors in order to carry out an effective restructuring and raise new investment in the Russian banking sector, it said.

"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," Deputy Central Bank Governor Vasily Pozdyshev is quoted in the press release as saying.

The Central Bank reckons that RDIF's participation will increase returns from management and sale of non-core assets and will help attract strategic investors to assets on the fund's balance sheet, he said.