Russia lost billionaire because of the margin call

Once in February of this year, Sberbank announced a margin call on the loan Eurocement secured 6,12% stake LafargeHolcim Ltd. $1,5 billion, owner of the Eurocement Holding Filaret Galchev has lost most of his fortune, according to Bloomberg.

According to the Bloomberg Billionaires index, the condition of 52-year-old businessman fell to $305 million from $1 billion at the end of December and $5.6 billion in mid-2014. According to the Agency, the asset value Galchev began to decline with the global slowdown that has reduced demand for construction materials.

January 21, Sberbank bought 6,12% of the shares of the Swiss company LafargeHolcim Limited and arranged financing for Eurocement within the repo under pledge of 37,2 million shares LafargeHolcim. According to Bloomberg, the purchase of 10% of LafargeHolcim Limited Galchev since 2008 has spent $2.3 billion Commenting on the deal, the first Deputy Chairman of Sberbank Maxim Poletaev Salal that “appreciates” the trust between the Bank and the company Galchev.

As noted by Bloomberg, the shares of LafargeHolcim has fallen in value against the strengthening Swiss franc, and the company’s revenues declined due to slowing economies in Brazil and China and the weakening of the Russian rouble (in Russia the company has assets). Shares of the Swiss company since the beginning of the year fell by 29%, and capitalisation has decreased by $9 billion.

Two weeks after the deal with Eurocement, Sberbank got rid of the pledge in one day selling package on the market with a 9 percent discount, according to Bloomberg.

The press service of Eurocement, Sberbank and LafargeHolcim declined to comment to the Agency.

Galchev state last year was estimated by Forbes at $4.4 billion In the Forbes “Richest businessmen of Russia” in 2015 he took 23rd place.

As noted by Bloomberg, stocks on loans is now included in other major Russian businessmen: collateral is the percentage of Dmitry Mazepin in PJSC “Uralkali” and PJSC package in “the Megaphone” Alisher Usmanov and its partners, but credit conditions do not provide for a margin call.

“Large Russian business practically stopped lending, the terms of which include margin calls, after the 2008-2009 billionaires had to spend for early repayment of a significant amount of money, and some lost their assets”, — quotes Bloomberg an analyst of JSC “ING Bank (Eurasia)” Egor Fedorov. Other margin calls on major assets is unlikely, though owners of smaller companies can lose assets because of debt servicing problems, he said.