Sberbank CIB News

Integration of Sberbank and Troika Dialog leads to creation of new subdivision of the Corporate Investment Block: Sberbank Merchant Banking

30.07.2012

As part of the integration of Sberbank of Russia and Troika Dialog a new structural subdivision – Sberbank Merchant Banking1 – is being created in the Corporate Investment Block (CIB). This subdivision will bring together the Strategic Projects Department, currently part of Troika Dialog’s Investment Banking Division, and the Sberbank Investment team, a 100% subsidiary of Sberbank of Russia.

Sberbank Merchant Banking will have the task of creating a high-yield securities portfolio of the clients of the CIB – key representatives of various sectors of the economy. The investment focus of Sberbank Merchant Banking will also include existing clients and those that are potentially interested in CIB products and services. Investments will include shares, derivatives and structured instruments. It is assumed that the initial phase will focus primarily on investing Sberbank’s equity capital. In future it is possible that Sberbank Merchant Banking will manage funds from co-investors.

The newly-created subdivision will be headed by Oscar Ratsin, who prior to this was Managing Director and Deputy Head of Investment Banking. In his new position, Oscar will report directly to Co-head of CIB, Member of Sberbank’s Management Board, Vice President and Director of the Corporate Clients Department Alexander Bazarov, and Ruben Vardanian, President of Troika Dialog.

Oscar Ratsin joined Troika Dialog in July 2011 from Sberbank, where he headed the Corporate Finances Division of the Corporate Clients Department for two years. Mr Ratsin possesses over 20 years of international experience of the financial industry, including in investment banking and private equity funds.

Commenting on the creation of this new CIB subdivision, Alexander Bazarov remarked: “We are constantly improving our client model, unifying and strengthening teams of professionals of various fields and expanding our product offering by including new, more complex financial products and providing clients with new ways to develop their businesses. By creating Sberbank Merchant Banking as part of the Corporate Investment Block we are in effect planning to jointly invest our capital in the further development of the companies that are our clients and also in the future by providing independent investors the opportunity to invest their funds in Russia’s leading companies.”

“We meticulously select investment projects, giving preference only to those where our participation will be of maximum benefit in terms of growth of the companies involved,” stated Ruben Vardanian. He added: “The Sberbank Merchant Banking team has not only in-depth understanding of the market and the investment business, but also commands practical experience and the resources necessary to implement strategic projects of the highest possible standard. In future our participation in investment projects will serve as a guarantee to our future partners – the guarantee that the financial market’s finest professionals are working on the capitalisation of the portfolio company.”

“Currently the portfolio of Sberbank Investments includes the securities of major infrastructure, construction, pharmacological, and oil industry companies. We plan to further grow and diversify our investment portfolio by adding securities that possess high growth potential, from various sectors of the economy. We are not offering to invest in controlling stakes of companies or to extensively manage their operating activities,” clarified Oscar Ratsin. “We see ourselves as a natural partner for Russian companies searching for new financing opportunities as well as for international companies looking to enter the Russian market. At the same time, our merged team will continue to act as an advisor on special deals where unique expertise and instruments are needed.”

Additional information:

Sberbank is the largest bank of Russia that holds about 27% of the Russian banking assets and employs nearly 240,000 people. The Central Bank of Russian Federation is the founder and major shareholder of Sberbank, owning 57.6% of its issued outstanding shares. Other shares are held by more than 245,000 individual and institutional investors. The Bank has one of the largest networks in Russia: 17 territorial banks, about 19,000 branches as well as subsidiaries in Kazakhstan, Ukraine and Belarus, a branch in India, representative offices in Germany and China. With the acquisition of Volksbank International in 2012 Sberbank gained presence in nine Central and Eastern European countries.

The bank holds the general banking license No.1481 issued by the Bank of Russia.

The official website is www.sberbank.ru

Alexander Baziyan, tel. +7(495) 957 5721, e-mail: media@sberbank.ru

Troika Dialog is part of the Sberbank Group, and is one of the leading investment companies operating in the CIS. The key business areas of Troika Dialog, founded in 1991, are securities sales and trading, investment banking, private wealth and asset management, direct and venture investments, as well as personal investment and finance. Troika Dialog’s operations are located in 21 cities across Russia plus offices in New York, London, Nicosia, Kyiv and Almaty.

Closed joint stock company “Investment Company “Troika Dialog”. 4 Romanov pereulok. 125009, Moscow. Phone: (495) 258 0500. Fax: (495) 258 0547.

Nikita Sekretaryev, tel.: +7 (495) 258 0519, e-mail: pressa@troika.ru

1Strategic investments made by the bank that are aimed at further development of the largest companies of various sectors of the economy, which are also clients of the bank.