The Ministry will entrust the organization of the “large privatization” three Russian banks. To sell stake in Bashneft will be “VTB Capital”, ALROSA – Sberbank CIB, shares in VTB, Renaissance Broker, says the official message of the Ministry of economic development.
In mid-March the Ministry of economic development sent to Russian and foreign banks the proposal to take part in the organization of sales 50,08% of shares of “Bashneft”, 10,9% ALROSA and 10.9% VTB as consultants. The answer they should have given until March 21.
On a government list of potential organizers of the privatization includes Goldman Sachs, JP Morgan, Credit Suisse, Deutsche Bank, Morgan Stanley, Barclays, RBS, BNP Paribas, UBS, Citi, UniCredit, Societe Generale, BofA-ML, Raiffeisen, Sberbank CIB, “VTB Capital”, “VEB Capital”, Gazprombank, “the Renaissance the Broker”, Alfa-Bank, MDM Bank and “the Russian auction house”. Deputy Minister of economic development Nikolai Podguzov said that their bids were submitted by 10 banks, among which there were both Russian and foreign.
Earlier it was reported that U.S. banks are afraid to participate in the forthcoming privatization of packages Bashneft ALROSA and VTB. “American banks are not willing to take the risk that it will not be approved by the state Department”, — told a source in one of the Western investment banks. This information was confirmed by the top Manager of us Bank, who noted that most of the American banks, whose offices are opened in Russia, is not going to participate in privatization. “Banks simply have not submitted their applications for fear of history repeating with the Russian Eurobonds”, — he said.
In late February, U.S. authorities have warned major banks of the USA from participation in the government bonds of Russia. The Finance Ministry and the US state Department has issued a special warning, having received from banks questions about whether they can participate in placing the bonds. The American authorities considered that such transactions would be contrary to the sanctions policy.
On the proposal of Minekonomrazvitia responded while Swiss banks UBS and Credit Suisse, has informed on Tuesday Agency Reuters. That UBS intends to participate in the contest by the organizer of privatization, also said a source at one of the European banks. “The Bank has applied to the government,” he said, without specifying the parameters of the proposal.
The investment banker from the European Bank not surprised by the government’s decision to choose as organizers of the privatization of Russian banks. “Often, when it comes to contracts with the state, the winner one, but then it may draw as partners with other banks, including foreign ones,” he says. The banker also has not excluded that the choice only of Russian participants indicates that the Ministry has not agreed to any additional conditions which were put forward by the Western participants. In particular, he recalls, the banks, claiming participation in the organization of Eurobond, requested from the government guarantees that investors ‘ money is not going to sanction funding of projects.