VEDOMOSTI. Renaissance Credit Group, which consists of Russia- and Ukraine-based banks Renaissance Capital, is ready to sell off its retail assets in Ukraine, Vedomosti business daily wrote on Tuesday with reference to the group’s CFO Tatjana Khondru. The Ukraine bank generates handsome profit, but the Russian lender’s expected ROE is far higher and therefore the group’s shareholders decided to focus efforts on retail operations in Russia, she pointed out. The transaction price has not yet been discussed; talks with potential buyers have just begun, but investors representing Ukrainian and international banks “already exercised interest”, Khondru assured. The group, according to her, is looking for both a strategic and portfolio investor. Renaissance Group spokesman in Ukraine Konstantin Golovinsky does not rule out the sale of a 100% stake in the bank.
“In Russia retail banking business has far more prospects in coming years as the Russian economy is stronger than the Ukrainian,“ agreed Mikhail Zak, head of research at Veles Capital. Previously the group transacted a deal involving equity stakes in the Russian bank: 100% of the lender’s capital was pledged with MDM-Bank as collateral for the $150 mln credit facility provided to the group’s head company — Renaissance Group Holdings. “There is no connection between MDM-Bank’s credit and the decision to start looking for a strategic investor for the group’s retail assets in Ukraine,” the Renaissance representative assures. At the same time, the group became a co-owner of another bank in Russia. Renaissance Capital Investment Bank (owned by Renaissance and Onexim Group) acquired from Bank of Cyprus Lidbank based on which it will provide lending and carry out currency operations.
Bank of Cyprus in turn will focus efforts on its subsidiary bank, Uniastrum Bank.
