Foreign investors are being lured back into Russia by businesses seeking to tap the public equity and bond markets, the Financial Times reports today, after almost three years when they have shied away over concerns of the impact of sanctions as well as worries over the economy.
Last month’s $335m flotation of children’s retailer Detsky Mir capped a month that saw $1.2bn invested in Russian businesses through initial and secondary offerings in Moscow, with a further $2.5bn being raised last month through Eurobonds, whose high rates have attracted international investors.
Further flotations are now in the pipeline lead by billionaire Oleg Deripaska’s plans to list his EN+ holding company in an IPO that is expected to raise as much as $2.7bn. Russia’s biggest gold producer Polyus, which raised $800m in a Eurobond in January, is close to finalising details of a secondary placement and online retailer Ulmart and shoe store Obuv Rossii are both also said to be weighing possible flotations. “Companies have been hungry for capital for a few years, and now see this period as an open window that they can jump through, in case it closes again,” says Anna Vasilenko, head of primary markets at the Moscow exchange.