MICEX-RTS Equity Investment

Location:

Russia

Project number:

43126

Business sector:

Non-depository Credit (non bank)

Notice type:

Private

Environmental category:

FI

Approval date:

13 Dec 2011

Status:

Disbursing

PSD disclosed:

30 Jan 2012

Translated version of this PSD: Russian

Project Description

The EBRD has completed the acquisition of a 6.29% equity stake in MICEX-RTS (the “Company”) through a purchase of ordinary voting shares from the Company. MICEX-RTS was formed as a result of the merger between Moscow Interbank Currency Exchange (“MICEX”), the largest Russian stock exchange, and RTS Stock Exchange (“RTS”), Russia’s largest derivatives exchange.

The project is a continuation of EBRD’s efforts in supporting the development of Russian capital markets and specifically of the Russian Government’s initiative to establish Moscow as an International Financial Centre.

Transition Impact

The equity investment will enable EBRD to be part of the leading stock exchange in Russia and CIS region. EBRD, as an investor, board member and business partner will be able to support key development areas such as improvement of corporate governance, further regional expansion and improvement of laws and policies and contribute to the further capital markets development in Russia.
The transition impact and demonstration effects associated with this potential investment are expected to include:

  • contribute through it’s shareholding in MICEX-RTS to the development of Russian capital markets and, thereby, support of the government’s initiative to create an International Financial Centre;
  • influence the development of Russian capital markets by being a shareholder in the Company, which is central to Russian capital markets;
  • contribute to improvements in overall corporate governance for Russian listed companies and listing requirements in line with international standards.

The Client

MICEX-RTS, the Russian stock exchange formed after the merger of MICEX and RTS:

  • MICEX was the leading stock exchange in the CIS and CEE region by market turnover with a strong position in cash equities and bond spot markets, based on stable and reliable trading infrastructure. MICEX was ranked 10th in terms of valuation among global peers and posted revenues of USD 354 mln and net profit of USD 158 mln in 2010.
  • RTS was the Russian leading exchange in derivatives trading and one of the top-10 global derivatives exchanges. RTS is also present in Ukraine and Kazakhstan. RTS posted revenues of USD 107 mln and net profit of USD 33 mln in 2010.

EBRD Finance

Equity investment.

Project Cost

Confidential.

Environmental Impact

Categorised FI. MICEX-RTS will be a market place for the trading of a variety of financial instruments and shares and, as such, will not provide any funding to clients, either individuals or companies. The environmental and social risks associated with the activities of MICEX-RTS are expected to be limited. The Company will be required to comply with the EBRD's Performance Requirement 2 (Labour and Working Conditions) and Performance Requirement 9 (Financial Intermediaries).

Due diligence reviewed E&S and HR due diligence questionnaires completed by MICEX and RTS as parent companies and found those satisfactory. To mitigate any economies of scale effect that might result from the merger between the two exchanges, the Company will need to develop and implement a Retrenchment Plan and respective internal mechanisms and procedures satisfactory to the Bank.

Technical Cooperation

None.

Company Contact

Ms. Varvara Inozemtseva
Head of Communications
MICEX-RTS
Tel: + 7 495 363 3232
E-mail: Varvara.Inozemtseva@micex.com

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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