The European Bank for Reconstruction and Development (EBRD) and the Russian Direct Investment Fund (RDIF) has agreed to acquire stakes of 6.29% and 1.25%, respectively, in Russia’s post-merger MICEX-RTS stock exchange.
The investment is part of a long-term strategy to promote the development of local capital markets in Russia and broaden the regional and international appeal of this recently unified exchange, EBRD said in a statement announcing the investment.
The RDIF is a $10 billion Russian government fund established in 2011 that invests in leading companies in fast-growing sectors in Russia, investing in partnership with leading financial institutions and corporations.
The turmoil in the world economy gives added urgency to the need to strengthen and deepen Russias capital markets so that they can provide the liquidity which the domestic economy needs to access and the creation of a unified exchange represents an important milestone in that process, says Varel Freeman, first vice president of EBRD. Through this investment, the EBRD hopes to contribute to increasing the attractiveness of MICEX-RTS so that it becomes the preferred exchange for Russian issuers and traders, as well as investors with an appetite for Russian stocks and other financial instruments.
(CG)