The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Russia: Banking sector investment continues apace

Investor appetite for exposure to the Russian banking sector shows no sign of weakening, with a series of transactions concluded in recent weeks. Headline-grabbing deals included foreign purchases of stock in MDM Bank and Rosbank. Domestic consolidation also continues, with the sale of LipetskComBank to Bank Zenit the latest example.

MDM Bank has secured a brace of minority shareholders, with investment company Olivant and supranational agency International Finance Corporation coming on board in a move that MDM’s management hope will help propel it into the country’s banking top 10. MDM is Russia’s 15th-largest bank by assets. London-based Olivant is taking an initial 10% stake with an option to acquire a further 5% equity interest within six years. "We view the Russian banking sector in general and MDM bank in particular as a dynamic environment with considerable growth potential," says Olivant’s chairman, Luqman Arnold, who was already an MDM board member and chairs its strategy committee

For its part, the IFC, which is the private-sector arm of the World Bank, is set to take a 5% holding in MDM for $184 million following the issue of additional shares planned for September. Edward Nassim, IFC’s vice-president for Africa, Europe and the Middle East, says that the participation in MDM is driven by the fact that the banking market is a key area of activity in Russia and that Russia is a key country for the IFC, where it has a $2 billion portfolio, making it the largest country exposure for the agency globally.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree