Investment Manager for International Fund for Russian SMEs
Deadline: 5 August 2013 at 12:00 pm CET.
The International Fund for Russian SMEs (IFORS) was created based on a Memorandum of Understanding, signed on 16th November 2012 by Vnesheconombank and KfW, in the presence of Vladimir Putin, President of Russian Federation and Angela Merkel, the Federal Chancellor of Germnay. The purpose of the Fund is to attract capital to sustainably foster and develop SME business in Russia. The Fund is designed to facilitate the Russian non-trading SMEs’ access to financial resources, in particular, through attracting long-term foreign investments. IFORS plans to accomplish this mission predominantly through senior lending to financial institutions, who will subsequently lend to non-trading SME clients. To diversify and complete its portfolio, at a later stage the Fund could also invest in direct long-term loans to medium-sized manufacturing and subordinated loans and equity of Russian banks and SMEs.
The purpose of this call for expressions of interest is to develop a list of eligible candidate companies that will be invited to tender a proposal for investment management services for IFORS.
Investment management companies, at their own discretion, may choose to appoint a junior partner, such as an investment advisor or another partner, to assist in such tasks as the management of the IFORS or the technical assistance facility.
Interested companies are invited to submit an expression of interest before the above-mentioned deadline.
Call for expressions of interest
A synopsis of the Fund, details on the method of application, and the evaluation of applications are available by sending an inquiry to firstname.lastname@example.org.
On 17 July the Bank for Development and Foreign Economic Affairs State Corporation (Vnesheconombank) (“VEB”) closed the book for its BO-01 series exchange bonds in a total principal amount of RUR20bn puttable after 2 years.
115 investors participated in the transaction with orders totalling RUR52.4bn.
Banks accounted for c.60.4% of demand while investment companies submitted orders for 18.1% and asset managers for 8.1%. International investors contributed 13.4% of the total subscription volume. The final coupon was set at 7.65% p.a.
The bonds will start trading on MICEX on 19 July 2013. The proceeds will be used for general corporate purposes, including financing of the Bank’s lending and investment activity.
Alexander Ivanov, Deputy Chairman – Member of VEB’s Management Board, said, “VEB has taken advantage of improved market conditions to price a successful offering. The deal was significantly oversubscribed. This was preceded by an extensive effort to align bond issuance under Russian regulations with international capital market standards”. “We are particularly pleased to see that as a result of this work, orders have been submitted by many foreign investors who did not participate in local issues in the past. Their demand was around RUR7bn.” – he also emphasizes.
Arrangers: VTB Capital, Raiffeisenbank, Citi.
Co-arrangers: Globexbank, Promsvyazbank, Ronin, Sberbank.
Underwriters: Bank Saint Petersburg, MTS Bank, Nomos Bank, Rosevrobank, Russian Agricultural Bank.
Co-underwriters: Aversbank, Asia-Pacific Bank, Project Finance Bank, Evrofinance Bank, Kapital AM, KIT Finance, Megatrustoil, Metcombank (Kamensk-Uralsky), Nordea Bank, Partner AM, Petrocommerce, Region, Rosbank, Rosenergobank, Sberbank CIB, Finprombank.
Press Office of Vnesheconombank
Phone: +7 (499) 608-46-93, Fax: +7 (499) 975-21-34