April 05, 2019, 21:19 / Finance / News

Sovcombank raised 6 billion rubles through an additional issue

Sovcombank sold 5% of its shares to foreign investors. Due to the additional issue, the bank raised 6 billion rubles, according to its statement.

Initially, the bank registered 10% more shares than it planned to place, says a Sovcombank representative. This is due to exchange rate fluctuations, he explains: when the dollar rises, investors can purchase more shares, the price of which is fixed in rubles.

Therefore, Sovcombank did not place all registered shares, although it actually received the entire planned investment, he says: “The deal is a continuation of the bank’s preparation for a public offering.”

Potential buyers included the Russian-Japanese Investment Fund, Saudi Ayar International Investment Company, Bahrain's sovereign fund Bahrain Mumtalakat Holding, as well as five co-investors of the Russian Direct Investment Fund (RDIF). Investors estimated the value of the entire Sovcombank at 122.6 billion rubles, or 1.08 of its capital.

This is not the first time that Sovcombank has attracted foreign capital investors: in August 2018, it placed a 9% stake and raised RUB 9.7 billion. The additional issue included the Russian-Chinese Investment Fund (created by RDIF and China Investment Corp.), Middle Eastern funds and the Japanese corporation SBI Holdings. Ilya Brodsky and Andrey Suzdaltsev, the founders of Rosevrobank (merged with Sovcombank in November 2018), each received 2.5% of the shares.