VTB Capital launches gulf investment banking business

Licensed by the DIFC in May 2009, VTB Capital's Dubai office is the main hub for the planned expansion of its investment business across the region, in line with the bank's international growth strategy targeting key markets in MENA, Europe and the Far East.

It offers the full range of investment banking and advisory services including fixed income and equity sales, commodities, structured products, M&A, ECM and asset management.

Differentiated from its international peers in the region, VTB Capital's business strategy is focused on meeting increasing Gulf investment interest in Russia by leveraging its leadership and knowledge of the Russian markets to identify and structure attractive investment opportunities for Gulf corporates and institutions.

In parallel it will assist its Russian and CIS client base to realise direct investment and capital raising opportunities in the Gulf, including through the origination, structuring and distribution of sukuk and, in time, through the potential for listing Russian and CIS companies on Nasdaq Dubai and other regional securities exchanges.

VTB Capital intends to develop fully-ledged Islamic Finance structuring services to international standards for its clients in Russia and the CIS that will for the first time provide attractive, Sharia compliant risk-managed equity, funding and commodities-linked exposure to Russia for Gulf investors, and accelerate the growth of Shariah-compliant products in Russia.

The company has already undertaken a number of important steps toward implementing its regional growth strategy including its recently signed Memoranda of Understanding with Liquidity Management House, a wholly-owned subsidiary of Kuwait Finance House, in respect of developing its Islamic Finance business and with Fouad Alghanim & Sons Co for General Trading & Contracting, one of the region's leading civil engineering concerns, for the development of power generation projects in both Russia and the Gulf.

VTB Capital is actively pursuing a number of initial opportunities in the region in the areas of investment management, M&A, infrastructure and capital markets and expects to announce its first transactions in the second half of 2009.

Commenting on today's announcement Andrei Kostin, CEO of VTB Group, said: "The development of VTB Capital as an investment bank purpose-built for the multi-polar financial markets of tomorrow and with a deep understanding of both the established and newly emerged economies, is a priority for VTB Group and an important part of the Group's strategy. Today's launch of the new regional base in Dubai is a major step towards that aim and we are fully committed to supporting VTB Capital's rapid growth and business development in the Gulf, one of the world's most important investment centres in this new global market environment."

Yuri Soloviev, President and Global CEO of VTB Capital, said: "The potential for increasing financial flows between Russia and the Gulf region, in both directions, is immense and I believe our presence here will accelerate the growth of closer financial ties between these two important regions. As a Russian investment bank with a global presence we are well placed to serve the needs of Middle Eastern clients in the new global environment by broadening the financial opportunities available to them, especially in Russia and the CIS. VTB Capital's increased presence in the region is a sign of our commitment to the Gulf financial markets and Dubai will be the key part of our global network, following the recent expansion of our international operations."