The decision by the European Bank for Reconstruction and Development to invest in Russia’s MICEX-RTS stock exchange is a positive sign for the market, as the bourse prepares to hold its initial public offering, Central Bank First Deputy Chairman Alexei Ulyukayev said on Tuesday.
The EBRD and Russian Direct Investment Fund (RDIF) announced their decision on Monday to acquire stakes in the recently merged MICEX-RTS stock exchange, in a move likely to make Moscow more attractive as an investment market for local companies and foreign investors.
The EBRD will acquire 6.3 percent of the MICEX-RTS bourse while the $10 billion direct investment fund will get 1.3 percent.
“The EBRD and RDIF’s equity investments support Russia’s goal of transforming Moscow into a globally important and competitive international financial hub,” the EBRD said in a statement on Tuesday.
“Through this investment, the EBRD hopes to contribute to increasing the attractiveness of MICEX-RTS so that it becomes the preferred exchange for Russian issuers and traders, as well as investors with an appetite for Russian stocks and other financial instruments,” the EBRD said.
