Page 94 - RusRPTNov19

all-time high of RUB2.85 trillion and $42.7bn in London. Previously the ban was expected to be enacted in 2022, but then was moved to 2020, and finally has been enforced already in 2019. As reported by bne IntelliNews, Norilsk Nickel is expected to lock-in the gains from the bank already this year. VTB Capital estimated that the ban could create a 10% deficit on the global nickel ore market. Norilsk Nickel gets about a third of its top line from the sales of the metal, which saw the price jump 40% since the beginning of the year to almost $19,000 per tonne.
Firlibia Holdings, minority shareholder in Russia's largest real estate developer PIK , sold 13mn shares or 1.96% of company's share capital through accelerated book-building, Bloomberg reported on October 9. Through the sale, Firlibia cuts its stake in PIK from 4.9% to 2.94%. The shares were sold at RUB345, which made a 10% discount to market value. Firlibia Holdings is owned by Mark Rhodes, unconnected with key shareholders Sergey Gordeev (59.3%) and state-controlled VTB Bank (23.1%). The company's free float remains the same at 17.6%, but the 10% discount on the sale is likely to produce a short-term weakness in the name.
Leading Russian consumer lender TCS Group that operates Russia’s only pure online bank Tinkoff Bank listed its global depository receipts (GDRs) on the Moscow Exchange (MOEX) with the trading to start on October 28, Kommersant daily reported on October 23. Prior to the SPO on MOEX, TCS has been trading on London Exchange. However, the banking group will not hold a new issue, but will list GDRs already on the market, seeing to broaden the investor base, the representatives of the bank told Vedomosti daily. As reported by bne IntelliNews, in June TCS carried out an SPO, raising $300mn on London Stock Exchange with the issue of new GDRs. “The addition of another stock exchange should increase the investor base and potentially trigger inclusion of TCS’ GDRs into MSCI indices next year if TCS passes all required thresholds,” BCS Global Markets commented on October 24. This month Fitch Ratings welcomed the improved capitalisation of TCS after the London SPO , which "together with strong pre-impairment profitability results in a greater ability to absorb losses in case of stress relative to its peers." Fitch upgraded Tinkoff Bank's (Tinkoff) long-term Issuer-Default Ratings (IDRs) to 'BB' from 'BB-', with a Stable outlook. The agency attributed the upgrade of Tinkoff's ratings to the bank's extended record of exceptionally strong performance, supported by the ongoing diversification of the bank's business model and growing franchise. TCS Group boosted net profit by 37% year-on-year and 14% quarter-on-quarter in 2Q19 under IFRS to RUB8.2bn,
94 RUSSIA Country Report November 2019 www.intellinews.o