Page 119 - RusRPTApr21

number of factors including fears of new harsh sanctions on Russia by the US that caused a sell off of Russian securities last week and also caused the Ministry of Finance to cancel its weekly OFZ bond auction. Turkey’s ballooning crisis following the sacking of the central bank governor has also unsettled investors and increasing is affecting other markets like Russia.
Aeroflot under Covid risk – SPO?. Low international traffic and the ongoing lockdowns in Europe are creating risks for Aeroflot, which currently does not face any liquidity issues. In response to these risks, the Russian government is working on a strategy to support Aeroflot's finances, Deputy Minister of Finance Alexey Moiseev announced yesterday, 23 March. This includes potentially raising funds abroad, which Mr. Moiseev sees as an option, including placing Eurobonds. However, Mr. Moiseev believes that a new SPO is not an option, as shareholders just faced a dilution in 4Q20. Another option is an IPO for Pobeda, according to Minister of Transport Vitaly Savelyev, Interfax reported yesterday. According to Mr. Savelyev, rating agencies value Pobeda at more than $1bn. Interfax reported on 24 February that Aeroflot CEO Mikhail Poluboyarinov had said that AFLT does not have an IPO on its agenda due to the weak market conditions. Raising cash via a bond placement could be challenging, as Aeroflot had a high ND/EBITDA of 24.4x at YE20. At the same time, a potential IPO for Pobeda could support sentiment in AFLT shares.
Russia’s largest real estate developer PIK Group is toying with the idea of an SPO in the foreseeable future, CEO and majority shareholder Sergei Gordeyev said in an online conference on March 22, reports PRIME. The clear market leader, PIK has been growing fast in recent years and has become something of an investors’ darling as its shares have outperformed both the index and its peers in the sector. While the Russian stock market was knocked by by the coronacrisis, PIK shares regained their pre-crisis level already in the middle of last year.
The board of directors of major Russian mobile operator Mobile TeleSystems (MTS) has approved a 15bn ruble share repurchase program, the company said on March 18in a statement. “At a meeting on March 18, the board approved the repurchase of MTS shares of common stock, including shares of common stock represented by ADSs, in the amount of up to 15bn rubles through the end of calendar year 2021,” MTS said. The company also said it will disclose additional details regarding the buyback program prior to its start. (
listed its shares
Russia’s dollar-store retailer Fix Price has successfully gone public,
marking the country’s largest IPO since the annexation of Crimea. Fix Price
at the upper limit of its target range at $9.75. It raised
$2 billion, an increase from the anticipated $1.5-1.7 billion, and it achieved a
market capitalization of $8.3 billion. This values Fix Price as Russia’s second
most valuable retailer, a remarkable feat indicative of how declining living
119 RUSSIA Country Report April 2021 www.intellinews.com