Arab Today, arab today russia taps thawing markets with 54 bn
Last Updated : GMT 20:31:08
Arab Today, arab today
Arab Today, arab today

Russia taps thawing markets with $5.4 bn

Arab Today, arab today

Arab Today, arab today Russia taps thawing markets with $5.4 bn

Moscow - AFP

Russia became the first emerging market to tap into a recent uptick in investor confidence by unveiling Monday a $5.4-billion auction of a minority stake in its prized main lender Sberbank. The Central Bank of Russia said the 7.58-percent stake sell-off would leave the state with a 50-percent plus one voting share holding in the country\'s main retail financial institution. The auction comes in the midst of a three-year $40-billion privatisation programme designed to kick-start the economy after the critical slowdown that followed the 2008 global financial crisis. A central bank statement said the stake would be auctioned off in both dollars as global depository shares (GDS) on the London Stock Exchange and rubles as ordinary shares appearing on Moscow\'s MICEX exchange. The auction was expected to finish on Wednesday. Russian law forbids foreign investors -- estimated to currently hold about 20 percent -- from owning more than a quarter of the company. The other private shareholders who take up the remaining Sberbank shares are also forbidden from trading stock for 180 days after the placement. \"The offerings represent an opportunity for us to further diversify Sberbank\'s investor base and secure an international stock exchange listing,\" said Sberbank chief executive German Gref. The modern version of the venerable tsarist-era bank was founded in 1990 and now plays a pivotal role in the Russian economy while also being one of its most heavily-traded stocks. Sberbank provides emergency credits to other lenders and holds nearly half of the country\'s savings. It also issues about a third of its loans. The bank said it would place the ordinary shares in Moscow at the initial price of 91 rubles ($2.98) and set the final value at the market rate. A source told Interfax that the entire offering had been fully booked at what had primarily been an open-ended market price by the end-of-day Monday -- an omen for an initial jump in the price of the stock. Another said to RIA Novosti that the giant Texas-base TPG Capital investment fund wanted to expand its current $100-million holding in Sberbank ten-fold to more than a billion dollars. \"We believe the chances for the successful completion of the transaction are high,\" the Swiss-based UBS financial service company said. The set of announcements mark an important victory for President Vladimir Putin as he pushes ahead with privatisation despite headwinds from a tumultuous European economy and uncertainty about the Russian market abroad. The massive sell-off drive -- the largest since the 1990s -- was initially intended to help cover the vast expense of a new spending programme the government had been planning for Putin\'s historic third term. But the strongman leader\'s formal return in May was marked by continued wobbles in Europe and massive outflows of Western investor capital from Russia that are estimated at billions of dollars per month. Investor fears about Russia tend to dissipate with improvements in global sentiment and the government now appears to be betting that recent European Central Bank and US Federal Reserve action will spur the markets in the months to come. Some analysts predicted the gamble to pay off big as Western investors seek profit in an emerging market that has recently underperformed its rivals because of political and bureaucratic risks. \"We believe that the central bank\'s offering is well timed, both because of market strength and because of expected pressure on sector and Sberbank profitability,\" Moscow\'s Alfa Bank said in a research note. \"We expect the deal to be a success given the high risk appetite following the European Central Bank\'s outright monetary transactions (OMT) and the Fed\'s (quantitative easing) proposal,\" Russia\'s VTB Capital agreed.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today russia taps thawing markets with 54 bn Arab Today, arab today russia taps thawing markets with 54 bn

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today russia taps thawing markets with 54 bn Arab Today, arab today russia taps thawing markets with 54 bn

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today A no-frills business success

GMT 07:00 2017 Wednesday ,20 September

A no-frills business success
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israel sees benefits in independent Kurdistan

GMT 07:58 2017 Wednesday ,20 September

Israel sees benefits in independent Kurdistan
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today New Zealand opposition looks

GMT 10:35 2017 Thursday ,14 September

New Zealand opposition looks
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Intel chips loaded in Waymo

GMT 14:43 2017 Wednesday ,20 September

Intel chips loaded in Waymo
Arab Today, arab today Five trends at the Frankfurt auto show

GMT 12:04 2017 Monday ,18 September

Five trends at the Frankfurt auto show
Arab Today, arab today Horia Farghaly happy for success of “Case G”

GMT 12:14 2017 Monday ,18 September

Horia Farghaly happy for success of “Case G”
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 06:31 2017 Saturday ,16 September

Eman Al Assy receives three offers

GMT 05:05 2017 Tuesday ,12 September

Pregnant woman's suicide roils China

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 04:26 2017 Wednesday ,20 September

Opioid overdose deaths take 2.5 months

GMT 11:40 2017 Monday ,18 September

Russia and Iraq restore air travel

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:56 2017 Friday ,15 September

Apple's grand plan in Ireland held up by a forest

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday