RDIF and Eastern Institutional Investors Target Ag Firm Sodrugestvo

Sovereign Wealth Fund Institute, 27.03.2014

The Russian Direct Investment Fund (RDIF) with its group of institutional investors from the Middle East and China are investing in Sodrugestvo Group SA for a US$200 million stake. Incorporated in Luxembourg, Sodrugestvo is an agricultural processor and trader, generating US$2 billion in revenue in 2013.

Founded in 1994, Sodrugestvo is the biggest supplier of soybean meal in Russia. Sodrugestvo operates crushing plants in Kaliningrad Oblast. The company has a number of verticals which include a port infrastructure business, rapeseed processing, trading agricultural commodities and warehousing.

Over the past years, the RDIF has built co-investment vehicles with Gulf and Asian institutional investors including sovereign funds. The investors in the deal include the China Investment Corporation and a Middle Eastern sovereign wealth fund. This deal is on the back of Russia facing a probability of Western sanctions.

In a RDIF press release, Kirill Dmitriev, CEO of RDIF, said “Sodrugestvo is a high growth company, with revenues increasing eightfold since 2005. The fact that RDIF established the consortium is a clear signal that international capital remains available for high quality Russian companies. RDIF’s investment will support expansion across both the supply chain and international markets to increase the Company’s global competitiveness.”