Russian Direct Investment Fund will invest in a bank of "bad" assets and will receive a stake in it
The Russian Direct Investment Fund (RDIF) and the Bank of Russia signed an agreement on the fund’s participation in the work of a bank of "bad" assets (Fund of non-core assets). The agreement was concluded at the St. Petersburg International Economic Forum (SPIEF-2018).
"The Bank of Russia is considering a possibility to attract RDIF to participate in the activities of the bank which is being created now by investing in its charter capital and by appointing RDIF representatives as members of the bank’s board of directors in order to conduct effective restructuring and attract new investments in the banking sector of the Russian Federation," the agreement says.
The Bank of Russia is now forming a bank of "bad" assets on the basis of the assets of three banks, which are undergoing financial rehabilitation: Trust, Rost Bank and Avtovazbank.
"The main objectives of attracting RDIF to the work of the fund are structuring of non-core assets, defining a strategy to bring them to the market and attracting investors to the projects and assets of the fund. This implies active participation of RDIF in management, therefore it is planned that RDIF representatives will enter the fund’s supervisory board. We expect that the participation of RDIF will ensure high return from management and sale of non-core assets, help attract strategic investors to promising assets that are on the balance sheet of the fund," deputy chairman of the Bank of Russia Vasily Pozdyshev said.
"The high level of expertise of RDIF in asset management, as well as the experience of successful interaction with leading international investors will make the fund's activities more effective," RDIF head Kirill Dmitriev said.
Earlier Pozdyshev said that the Bank of Russia expects to complete the filling of the bad assets fund by the end of 2019, and the total amount of funds may be about 2 trillion rubles ($32.5 bln).
According to him, the fund will work for three-five years and during this time all these assets will be liquidated or sold on market terms.