UPDATE: Sberbank: Some Russian firms may postpone IPOs over coronavirus

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MOSCOW, Mar 2 (PRIME) -- Top bank Sberbank is preparing initial public offerings (IPOs) of several Russian companies on the Moscow Exchange, but the timeframe may be revised due to the spread of coronavirus, Deputy CEO Anatoly Popov said in an interview with PRIME on Monday.

“We are working with several issuers. But the timeframe will, of course, need additional discussion due to the market’s high volatility caused by the spread of coronavirus. Listing of these companies is planned on the Moscow Exchange,” he said.

“The size of the deals varies from U.S. $250 million to $500 million. The Moscow Exchange and NASDAQ are among the possible platforms. We keep in touch will all the candidates, but cannot disclose the details.”

In January, Popov said that at least 10 domestic companies thought over IPOs, and three or four of them planned to organize their offerings in 2020.

Popov also said that Sberbank plans to offer at least 110 billion rubles of own investment bonds in 2020 because of strong investor demand for debut issues of the bonds.

“Sberbank hopes to repeat or even increase the size of offering own investment bonds this year. The first placement in January demonstrated that there is persisting investor demand for the instrument,” he said.

In 2019, Sberbank issued 110 billion rubles of investment bonds doubling the initially planned volume.

Sberbank also plans that its corporate bond portfolio will increase 5% in 2020, and the portfolio of loans to small and micro businesses will grow by over 10%, Popov added.

In 2019, the share of the bank’s corporate loans in foreign currencies fell by 2 percentage points to 29%.

Popov said separately that Sberbank continues to negotiate financing of the Northern Latitudinal Railway in a syndicate with VTB Bank and state development institution VEB.RF, the road map for construction is to be agreed until the end of March.

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