VTB Capital sells a stake in Pulkovo Airport to a consortium of RDIF, Middle Eastern and Asian co-investors and Baring Vostok

20 April 2017
Today VTB Capital signed an agreement with a consortium comprised of the Russian Direct Investment Fund (RDIF), Mubadala Development Company and other leading Middle Eastern and Asian co-investors alongside Baring Vostok Private Equity Fund V and related funds (Baring Vostok) to sell a 25% equity stake in Thalita Trading Limited (Thalita). Thalita is the holding company of Northern Capital Gateway Ltd, which operates Pulkovo Airport (LED) in St. Petersburg, Russia. 

As a result of the transaction, VTB Capital reduces its ownership in Thalita to 25.01%, Fraport AG’s and Qatar Investment Authority’s stakes will remain at 25% and 24.99% respectively. Fraport’s role as the lead airport operator of Pulkovo remains unchanged.

Consortium members have filed an application to the Federal Anti-Monopoly Service of Russia with respect to the transaction.

Yuri Soloviev, First Deputy President and Chairman of VTB Bank Management Board, said: “Since the VTB Capital-led partnership with Fraport initiated the development and reconstruction of Pulkovo Airport in 2010, we have been pleased with our investment in the project. Pulkovo’s transformation into a modern air travel hub has been acknowledged both by passengers and the professional airport community. Our long-term strategy has always assumed a gradual divestment once the airport reached target operational and financial results following the project’s completion, and the interest demonstrated by the consortium confirms the investment attractiveness of Pulkovo Airport. We are delighted that such high-calibre international investors are joining as the new shareholders and we are looking forward to developing the airport in partnership with them.”

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), noted: “In line with RDIF’s long-term strategy, this transaction enables leading foreign investors to access major infrastructure assets across Russia. Pulkovo Airport is an excellent example of a successful public-private partnership (PPP) – one of the largest PPPs in Russia – that has created a high-quality and stable asset. As a new shareholder of the airport, we are grateful to our colleagues from VTB Capital for the development of this asset and look forward to effective cooperation with all of our partners.”

JSC VTB Bank, its subsidiary banks and financial organisations (VTB Group or the Group) comprise a leading Russian financial group, offering a wide range of financial and banking services and products in Russia, the CIS, and select countries of Europe, North America, Asia, and Africa. 

The Group operates in Russia through the parent company VTB Bank and its five subsidiary banks. VTB Group’s largest subsidiary bank in Russia is VTB24. Its subsidiary financial organisations offer insurance, leasing, factoring, and other financial services, as well as services on the stock market.  

VTB Group has the most extensive international network of any Russian bank, with more than 30 banks and financial companies in more than 20 countries.

As of 28 February 2017, the Group was the second largest financial group in Russia by assets (RUB 12.54 trillion) and by customer accounts (RUB 8.26 trillion).

The Government of the Russian Federation is VTB Group’s main shareholder and owns 60.9% of the voting shares through the Federal Property Management Agency.

For more information please visit www.vtb.com  

Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Further information can be found at www.rdif.ru 

Pulkovo Airport is St. Petersburg’s air travel hub and Russia’s fourth-largest airport. The airport served 13.3 million passengers in 2016, approximately 60% more than in 2010 when Northern Capital Gateway (NCG) became the airport operator. NCG successfully completed a EUR 1.2 billion airport development and reconstruction program in 2014, which included the iconic and highly acclaimed new international terminal. This project modernized Pulkovo Airport and achieved the current capacity of 17 million passengers per year. Pulkovo Airport has been recognized as one of Europe’s leading airports by various authoritative industry organizations. Further information can be found at www.pulkovoairport.ru/en/ 

VTB Group Press Office

Теl.: +7 (495) 783-17-17
Fax: +7 (495) 783-18-95
E-mail: pr@vtb.ru


Corporate Communications VTB Capital
IMPORTANT INFORMATION – TERMS OF ACCESS
FOR INFORMATION ONLY

The information and opinions contained within VTB Capital research reports are prepared by research analysts associated with JSC VTB Capital, VTB Capital plc and their non-U.S. affiliates (each such entity, a “VTB Group entity,” and all such entities collectively, the “VTB Group”). The information, analytic tools, and/or models referenced herein (and any reports or results derived from their use) are intended for informational purposes only. VTB Capital has no obligation to update this information and may cease provision of this information at any time and without notice. The information and opinions described herein may be based on VTB Capital research reports that have already been published and made available to research customers. Accordingly, members or clients of the VTB Group may have acted upon or used the information or conclusions contained in this research report, or the research or analysis on which they are based, before its publication.

NO OFFER, RECOMMENDATION, INDUCEMENT OR ADVICE

This material does not constitute nor is it intended as an offer, inducement, promotion or solicitation for the purchase or sale of securities, investments or other financial instruments. Neither the information contained in the report nor any future information made available with the subject matter contained in the report will form the basis of any contract. This material is not intended to constitute an investment recommendation as defined by Article 3(1) (35) of Regulation (EU) No 596/2014, and related rules and regulations (each as amended). VTB Capital is not acting as a fiduciary. VTB Capital does not provide, and has not provided, any investment advice or personal recommendation to you in relation to any transaction and/or any related securities described herein and is not responsible for providing or arranging for the provision of any general financial, strategic or specialist advice, including legal, regulatory, accounting, model auditing or taxation advice or services or any other services in relation to the transaction and/or any related securities described herein. Accordingly, VTB Capital is under no obligation to, and shall not, determine the suitability for you of any transaction described herein. You must determine, on your own behalf or through independent professional advice, the merits, terms, conditions and risks of any transaction described herein. Any reference to past performance of securities or other financial instruments is for informational purposes only and does not imply or indicate future results.

CONFLICTS OF INTEREST

VTB Group entities do and seek to do business with companies referenced in research reports. Thus, investors should be aware that the VTB Group may have a conflict of interest that could affect the objectivity of this research report. Disclosures on the companies referenced in this report can be obtained by accessing the following webpages:

Research disclosures webpage - http://research.vtbcapital.com/ServicePages/Disclosures.aspx.

Investment Recommendations disclosures webpage https://www.vtbcapital.com/about/information-disclosure/investment-recommendations/

NO LIABILITY

Whilst every care has been taken in preparing the reports, no research analyst, director, officer, employee, agent or adviser of any member of the VTB Group gives or makes any representation, warranty or undertaking, whether express or implied, and accepts no responsibility or liability as to the reliability, accuracy or completeness of the information set out in the reports. Any responsibility or liability for any information contained in the reports is expressly disclaimed. All information contained in the reports is subject to change at any time without notice. No member of the VTB Group has an obligation to update, modify or amend the reports or to otherwise notify a reader thereof in the event that any matter stated in the reports, or any opinion, projection, forecast or estimate set forth in the reports, changes or subsequently becomes inaccurate, or if research on the subject company is withdrawn.

In the United Kingdom, the reports are approved and/or communicated by VTB Capital plc, a bank authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The reports are intended for those persons that would be classified as eligible counterparties or professional clients under the Financial Conduct Authority’s Conduct of Business rules. The reports have been made publicly available, and as such, constitute an ‘acceptable minor non-monetary benefit’ pursuant to Article 12(2) Commission Delegated Directive (EU) 2017/593 (as implemented into United Kingdom domestic law and regulation following the United Kingdom’s departure from the European Union). The reports do not intend to communicate an invitation or inducement to engage in investment activity, and as such do not fall within the definition of a Financial Promotion as per s.21 of the Financial Services and Markets Act 2000 (FSMA), and related rules and regulations (each as amended).

Reports are distributed in the European Economic Area (EEA) by VTB Bank (Europe) SE, registered with the number HRB 12169 at the register of companies in Frankfurt am Main and authorised by the Bundesanstalt fur Finanzdienstleistungsaufsicht (Federal Financial Supervisory Authority), Graurheindorfer Strasse 108, 53117 Bonn, Marie-Curie-Strasse 24-28, 60439 Frankfurt am Main and the European Central Bank, Sonnemannstrasse 20, 60314 Frankfurt am Main to provide banking transactions and financial services. Reports are intended for those persons classified as Eligible Counterparties or Professional Clients pursuant to Directive 2014/65/EU. In the United States, these reports are intended for persons who are considered ‘institutional investors’ as defined by FINRA Rule 2210(a)(4).

In Singapore, the reports are distributed by VTB Capital plc to accredited investors, expert investors or institutional investors only (as defined in the applicable Singapore laws and regulations and are not intended to be distributed directly or indirectly to any other class of person). Recipients of these reports in Singapore are to contact VTB Capital plc, Singapore branch in respect of any matters arising from, or in connection with, this report. VTB Capital plc, Singapore branch is regulated by the Monetary Authority of Singapore.

In Hong Kong, the reports are distributed by VTB Capital Hong Kong Limited, a licensed corporation (CE Ref: AXF967) licensed by the Hong Kong Securities and Futures Commission to “professional investors” (as defined in the Hong Kong Securities and Futures Ordinance and its subsidiary legislation) only.

In Russia, the reports are approved and/or communicated by JSC VTB Capital, a professional securities market participant regulated by the Central Bank of Russia. VTB Capital is not providing either investment advice or individual investment recommendations to the recipients of the reports or any other persons either under Federal Law On Securities Market of 22.04.1996 No. 39-FZ (or related rules and regulations, each as amended) or otherwise. These reports are not advertising as defined in Russian legislation, but are information and analysis not having product promotion as their main purpose and do not provide appraisal within the meaning of the Russian legislation on appraisal activity. Research reports do not constitute a personalised investment recommendation as defined in Russian laws and regulations, are not addressed to a specific client, and are prepared without analysing the financial circumstances, investment profiles or risk profiles of clients.

THESE REPORTS ARE INTENDED FOR ELIGIBLE COUNTERPARTIES OR PROFESSIONAL INVESTORS AS DEFINED IN THE RESPECTIVE JURISDICTION.

The reports are being furnished to certain persons as permitted by applicable law, and accordingly may not be reproduced or circulated to any other person without the prior written consent of a member of the VTB Group. Unauthorised use or disclosure of the reports is strictly prohibited.

By clicking ‘Confirm’ you attest that you are either a professional investor or eligible counterparty and agree to our terms of access as described above. If you are not considered to be a professional investor or eligible counterparty, please click ‘Decline’ and you will be reverted back to the VTB Capital website.