Russian state bank sale raises $8.8bn

22 February 2007

Sberbank, Russia's state savings bank will raise an estimated $8.8 billion from the domestic sale of shares, according to a government spokesman.

The sale, which closed yesterday, had been expected to raise $12 billion, but pulled in a lesser amount after the decision to only make the shares available domestically.

This lead to a decrease in demand and the listing of the shares at a 4 per cent less than the listed market price.

Even so, Sberbank's sale was the largest offering for a Russian business since Rosenft, the state oil company, was offered on the London Stock Exchange and pulled in $10.6 billion in July of last year.

Commenting on the sale in a televised interview, Sberbank chief executive officer Andrei Kazmin, said: "Mission accomplished - this is the first and biggest placement for a Russian bank,"

Analysts have hailed the sale of Sherbank, which is Europe's 11th largest bank, as a sign that Russian banking is finally escaping from the cycle of perpetual crisis. The sale of Sberbank is anticipated to be followed by share offers from Rosbank and Vneshtorgbank.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development