RDIF, Japanese, Middle Eastern funds to invest more in Sovcombank

MOSCOW, Jan 22 (PRIME) -- A consortium of investors comprising the Russian Direct Investment Fund (RDIF), the Russia–Japan Investment Fund, and Middle Eastern sovereign funds have agreed to partake in a second round of investment in Sovcombank, the RDIF said in a statement on Tuesday.

In 2018, the Russia–China investment fund, six Middle Eastern funds, and Japan’s SBI Holdings invested U.S. $106 million in Sovcombank.

“Since the time of investment by Russia–China Investment Fund and its partners Sovcombank has been showing consistent growth of key indicators. The bank was one of the fastest growing banks in Russia in the first nine months of 2018: its assets rose by 25%, and the return on equity reached 21%,” the RDIF said quoting its CEO Kirill Dmitriev.

Expansion of the investor consortium would help Sovcombank improve its business, help the bank in merger and acquisition deals, and have a positive impact on the bank’s planned initial public offering (IPO), the RDIF said.

The RDIF and the Russia–Japan Investment Fund also agreed with SBI Holdings on investment in SBI Bank, the Japanese company’s subsidiary in Russia, the fund said.

End