RDIF backs Alrosa IPO
The Russian government's privatisation programme is falling behind target.
The Russian Direct Investment Fund (RDIF) has invested in the IPO of Alrosa, a state-owned Russian diamond miner.
The Kremlin-backed firm, which was set up in 2011 to make equity investments in Russia, backed the miner alongside a consortium of foreign investors. The deal values the company at RUB257.7bn (€5.87bn).
The sale is part of the Russian government's privatisation programme, aimed at boosting its economy, the growth of which has slowed to a four-year low.
Alrosa is the only asset the government has managed to sell this year, amid declining investor appetite and disputes as to which assets should be privatised.
The finance ministry reportedly hoped to realise $13.44bn (€9.7bn) from the privatisation programme this year, but subsequently reduced this to just over $1.5bn.