South African Standard Bank invests further into Russia
Thématique :
sud afrique
Tuesday, 10 March 2009
In an indication of the relative strength of South African banks in the current global economy, Standard Bank has purchased 33% of Troika Dialog, the most established and largest independent investment bank in Russia.
Under the terms of the deal, Standard Bank will provide a $200m convertible loan to Troika. The loan, as well as the acquisition by Troika of Standard Bank's operation in Russia (ZAO Standard Bank), will translate into a 33% equity stake in the merged entity.
"The combined operation will have a capital base in excess of US$850 million and will be strongly positioned to compete in the Russian financial services sector and to pursue banking consolidation opportunities in Russia," Standard Bank said in a statement on Friday.
"I think it is fair to say South African banks have been relatively sheltered and find themselves in a stronger position than many and are able to contemplate (deals)," Rob Leith, CE of global corporate and investment banking at Standard Bank, said at a press conference on Friday.
The transaction is subject to the approval of the Central Bank of the Russian Federation and the Russian antitrust authorities and the South African Registrar of Banks.
Professor Christo Auret, from the School of Economic & Business Sciences at Wits, believes this deal broadens Standard Bank's horizons, "In times like these banks should look for opportunities and Russia has a huge developing economy."
"Such a deal is indicative of South African bank's relative soundness," said Auret.
Auret also maintained that such an investment will take some time to bear fruit, "it won't happen overnight. But as a Standard Bank shareholder one should be happy with such a deal."
Russia is the third largest economy amongst global emerging markets and has considerable resource wealth.
In an indication of the relative strength of South African banks in the current global economy, Standard Bank has purchased 33% of Troika Dialog, the most established and largest independent investment bank in Russia.
Under the terms of the deal, Standard Bank will provide a $200m convertible loan to Troika. The loan, as well as the acquisition by Troika of Standard Bank's operation in Russia (ZAO Standard Bank), will translate into a 33% equity stake in the merged entity.
"The combined operation will have a capital base in excess of US$850 million and will be strongly positioned to compete in the Russian financial services sector and to pursue banking consolidation opportunities in Russia," Standard Bank said in a statement on Friday.
"I think it is fair to say South African banks have been relatively sheltered and find themselves in a stronger position than many and are able to contemplate (deals)," Rob Leith, CE of global corporate and investment banking at Standard Bank, said at a press conference on Friday.
The transaction is subject to the approval of the Central Bank of the Russian Federation and the Russian antitrust authorities and the South African Registrar of Banks.
Professor Christo Auret, from the School of Economic & Business Sciences at Wits, believes this deal broadens Standard Bank's horizons, "In times like these banks should look for opportunities and Russia has a huge developing economy."
"Such a deal is indicative of South African bank's relative soundness," said Auret.
Auret also maintained that such an investment will take some time to bear fruit, "it won't happen overnight. But as a Standard Bank shareholder one should be happy with such a deal."
Russia is the third largest economy amongst global emerging markets and has considerable resource wealth.
