Page 104 - RusRPTFeb23

8.3.3 ECM news
The pioneer of Western investment in Russia, Baring Vostok (BV) fund, which was founded by Michael Calvey, will split its business and assets, RBC business portal reported on December 30 citing unnamed investment sources and partners of the fund.
As closely followed by bne IntelliNews, Russia’s most famous fund manager Michael Calvey and several of his colleagues from Baring Vostok Capital Partners were arrested in February 2019. Calvey was accused of embezzling RUB2.5bn ($37.5mn), and only in 2022 was his house arrest suspended.
After Russia's full-scale invasion of Ukraine, BV had already started exiting some of its assets. Reportedly now the main assets of BV will be divided between two new management companies: Baring Private Equity and Vostok Investments.
Vostok Investments will be chaired by Elena Ivashentseva (currently a senior partner at BV) and will manage companies whose core businesses are concentrated in Russia, such as top three e-commerce major Ozon Holdings, Solopharm, Skyeng, Vkusvill, Familia and others.
Baring Private Equity funds, which will still be managed by Calvey, among others, will hold investments in international companies such as Kaspi.kz, BlaBlaCar and Kolesa.kz. The change of structure in the investment group will not require or entail any changes to its portfolio companies, RBC commented.
8.5 Fixed income
Russia’s Finance Ministry returned to the Russian capital market to borrow heavily in late 2022, after taking a break for seven months after the war started and destabilised the domestic bond market. However, it didn't borrow significantly more than planned.
~2.2tn RUB new net debt
~1tn RUB expiring old debt ~3.3tn RUB bond issuance in 22.
8.5.1 Fixed income - bond news
104 RUSSIA Country Report February 2023 www.intellinews.com
Russia’s Finance Ministry continued to maximise its OFZ federal ruble bonds borrowings, placing RUB337bn ($5.6bn) worth of bonds in three auctions on the last auction day of 2022.