RUSSIA = GROWTH: Invest in Russia!
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RUSSIA = GROWTH: Invest in Russia!



RDIF presented booklet "RUSSIA = GROWTH: Invest in Russia" on St. Petersburg International Economic Forum 2013. ...

RDIF presented booklet "RUSSIA = GROWTH: Invest in Russia" on St. Petersburg International Economic Forum 2013.
Since its inception, the main result of the fund was that investors are attracted to Russia growing consumer market, favourable macroeconomic situation and highly qualified labour.



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RUSSIA = GROWTH: Invest in Russia! RUSSIA = GROWTH: Invest in Russia! Document Transcript

  • “Today the positive dynamic of the Russian economy, the accumulated safety factors and our reserves allow us to set new ambitious goals.” “The Russian Direct Investment Fund is now up and running. Practically all centers of global capital — the Middle East, China, Europe, the United States and Australia — are working with the Fund.” Vladimir Putin, President of Russia
  • “Russia has developed and achieved some good results, especially in light of the difficulties that global markets are experiencing.” “The Russian Direct Investment Fund has already attracted strong interest from top global investors and its project pipeline is growing.” Dmitry Medvedev, Prime Minister of Russia
  • INVEST IN RUSSIA! 1 WHY INVEST IN RUSSIA? RUSSIA = GROWTH Russia is the world's 6th largest economy by GDP (PPP). The Russian economy is expected to grow from $2 trillion in 2011 to over $3.2 trillion in 2017. Russia has one of the lowest levels of public debt of any major economy, currentlystated at 11% of GDPfor 2012 and approximately10.4% for 2013. rd 3 largest foreign reserves totaling $538 billion. th Russia has one of the largest domestic markets in the world, ranking 9 among 142 countries. Middle class tripled in the last five years and disposable income grew 53% from $4,850 per head in 2008 to $7.430 per head in 2012. Lowunemployment rate of 5.5%. GDPper capita is the largest among BRICcountries ($17.709). Russian GDP per capita increased compared to that of the USA from 1/20 in 2000 to 1/3 in 2012. Sources: World Bank, Cеntral Bank of Russia, IMF, EIU
  • INVEST IN RUSSIA! 2 GROWTH OF MODERN RUSSIA IN NUMBERS GDP per capita, PPP $ Nominal GDP per capita, $ Federal budget expenditures, $ bn Central Bank of Russia reserves, $ bn Average nominal monthly wage, $ Assets of Russian Banking System, $ bn Capitalization of Russian stock market, $ bn Public debt, % of GDP Inflation 6.787 1.331 27 12 62 59 40 88.7% 36.5% 17.709 14.247 416 538 738 1.598 875 10.9% 6.6% 1999 2012 2012 Sources: World Bank, Cеntral Bank of Russia, IMF, EIU
  • INVESTOR PERSPECTIVE ON RUSSIA Investors are attracted by the growing consumer market, favourable macroeconomic situation and highlyqualified labour. Over 70% of investors who previouslyinvested in Russia are happyabout their decision. 72% of investors positively value the economic policy and legislative changes introduced bythe Russian government to improve the investment climate. 82% of investors are convinced that the large domestic market, developing consumer finance sector, growing levels of savings and personal income present attractive investment opportunities. 84% of respondents noted that joining the WTO had a significant positive impact on the Russian investment climate. 3 Source: Advisory Counsel. Investment Climate in Russia 2012: Existing and Potential Investors Survey by Foreign Investment INVEST IN RUSSIA!
  • c s r e e 4 INVEST IN RUSSIA! Assessment of developments in Russian economic policy and legislative system Level of investors’ satisfaction 1% 17% 26%56% 71% 2% 8% 19% HIGH MEDIUM MIXED LOW Moving in the right direction Hard to say Slowed down in the last year 47% 25% 28% 22% 6% 72% Investors in 2007 Investors in 2012 Investors in 2007 Investors in 2012 Source: Advisory Counsel. Investment Climate in Russia 2012: Existing and Potential Investors Survey by Foreign Investment
  • INVEST IN RUSSIA! RUSSIA G20/B20 PRESIDENCY 2013 marks the year of Russia’s G20/B20 presidency. The B20 platform presents a unique opportunity for the global business community to shape the views of policymakers,suggesting practical solutions to the most important business issues. RDIF is leading the “Investments and Infrastructure” taskforce, which brings together global business leaders to discuss multilateral investments as the new source of economic growth, global investment climate, the importance of cross-border infrastructure projects and regulatoryincentives for international investment. More on“Investments and Infrastructure”taskforce at 5
  • ts ws er e er ABOUT RDIF 6 The Russian Direct Investment Fund (RDIF) is a $10 billion fund established by the Russian government to make equityinvestments primarilyin the Russian economy. RDIF was created in 2011 under the leadership of the President and Prime Minister of Russia to co-invest alongside top global investors, acting as a catalyst for direct investment in Russia. In just over a year the fund invested more than $2.6 billion into leading Russian companies, of which over $620 million were invested by RDIF and $2 billion came from co-investors. RDIF also attracted $3 billion of foreign capital into the Russian economy through long-term strategicpartnerships. RUSSIAN DIRECT INVESTMENT FUND INVEST IN RUSSIA!
  • 7 OVERVIEW OF RECENT TRANSACTIONS RDIFinvestedintheIPOoftheMoscowExchangeandattractedleadinginternationalco-investorsfrom the US and China.Prior to the IPO,through its co-investment model,RDIF also attracted other investors to the Exchange including the China Investment Corporation (CIC), BlackRock, the European Bank for ReconstructionandDevelopment(EBRD),andCartesianCapital. Consortium of RDIF,Macquarie Renaissance Infrastructure Fund (MRIF),AGCEquityPartners andXenon Capital Partners acquired a blocking stake in Enel OGK-5, one of the leading power generating companies in Russia.This was the largest private equitydeal in the energysector.Investment byAGCin thisdealwasthelargesteverinvestmentinRussiafromaMiddleEasterninvestor. RDIF together with BlackRock, Russia Partners and other qualified institutional investors acquired shares in MDMedicalGroup(MDMG),theNo1privatenetworkofprenatalclinicsinRussia,aspartofthecompany'sIPO. ConsortiumofRDIF,BaringVostokCapitalPartnersandUFGtogetherwithmediaentrepreneurPaulHeath acquiredacontrollingstakeinKaroFilm,oneofRussia'sleadingandfastdevelopingcinemachains. RDIF invested in the second-largest timber industry company of Russia Russia Forest Products, which wasthefirstinvestmentoftheRussia-ChinаInvestmentFund. RDIF together with European Bank for Reconstruction and Development (EBRD) and CapMan, one of the leading alternative asset managers, will invest up to $100 million into MAYKOR, the leading player in the Russian IT servicing and outsourcing market. RDIF and GE will be making a significant investment in construction of distributed power co- generation systems (up to 25 MW) to meet the growing energy demand for the developing industrial infrastructure of the Russian regions. A consortium comprised of RDIF, One Equity Partners and Titat International Inc., a leading international strategic player, reached an agreement to invest in Voltyre-Prom, the largest producer of agriculture and industrial tires in Russia & CIS. INVEST IN RUSSIA!
  • 8 INVEST IN RUSSIA! RDIF PARTNERSHIPS Together with China Investment Corporation (CIC) RDIF created a $2 billion Russia- China Investment Fund, 70% of which will be invested in Russia. An additional $1-2 billion is expected to be raised from Chinese institutional investors. RDIF launched an automatic co-investment mechanism, with the first $500 million from Kuwait Investment Authority. This vehicle allows international investors to automaticallyparticipate in everyRDIF transaction on a pro-rata basis. Pre-IPO Consortium created by RDIF with BlackRock, Franklin Templeton and Goldman Sachs, will invest in Russian companies planning to hold an IPO on MoscowExchange. RDIF, Vnesheconombank (VEB) and the Japan Bank for International Cooperation (JBIC) have signed a joint memorandum creating a Russian-Japanese Investment Platform. RDIF and JBIC will each invest $500 million. VEB will potentially provide financing to fund projects and design new financial products to support the platform. This platform will drive economic cooperation, trade and investment between Russia andJapanaswellasfacilitatetechnologiesandexpertiseexchange.
  • 9 International Advisory Board INVEST IN RUSSIA! Gao President, China Investment Corporation (CIC) Bader Mohammad Al-Sa'ad Managing Director Kuwait Investment Authority Chong-Suk Choi President & CEO, Chairman of the Board of Directors Korea Investment Corporation Khaldoon Khalifa Al-Mubarak CEO & Managing Director Mubadala Tadashi Maeda Managing Executive Officer Japan Bank for International Cooperation Stephen Schwarzman Chairman CEO Blackstone Group Xiqing Leon Black Chairman, Chief Executive Officer Apollo Global Management David Bonderman Managing Partner TPG Dr. Martin Halusa Chief Executive Officer Apax Partners Dr. Joseph Schull Head of European Operations Warburg Pincus Kurt Bjorklund Co-managing Partner Permira
  • Supervisory Board Alexei V. Ulyukaev First Deputy Chairman of the Central Bank of the Russian Federation (Chairman) Elvira S. Nabiullina Aide to the President of the Russian Federation Andrey R. Belousov Minister of Economic Development of the Russian Federation Kirill A. Dmitriev Chief Executive Officer Russian Direct Investment Fund Chief of Staff to the President of the Russian Federation Anton G. Siluanov Minister of Finance of the Russian Federation Vladimir A. Dmitriev Chairman Vnesheconombank Laurent Vigier Director of European and International Affairs Caisse des Dépôts Group Josh Lerner Jacob H. Schiff Professor of Investment Banking Harvard Business School Sergei B. Ivanov 10 INVEST IN RUSSIA!
  • INTERNATIONAL INVESTORS ABOUT RDIF “The Launch of RDIF for foreign investors like us is a very significant sign that the investment climate in Russia is getting better.” Lou Jiwei,Ministerof Finance of the People's RepublicofChina “The idea of RDIF is unique. Many private equity funds are established every day but there is only one fund in the world where a country says: “I am sending $10 billion and welcome anyone who would like to partner with me on good terms” — this is the onlyfund we have seen on these terms.” Bader M.Al-Sa’ad,Managing Director,Kuwait InvestmentAuthority “RDIF is a great opportunityto wake up people who were not engaged in the market and were cautious about it.” StephenSchwarzman,Founder,Chairman andChief ExecutiveOfficer,BlackstoneGroup “Creation of RDIF is a very interesting step and a great model together with a team that was created—TPG will definitelyworkwith them.” David Bonderman,Managing Partner,TPG 11 INVEST IN RUSSIA!
  • INVEST IN RUSSIA! RUSSIAN DIRECT INVESTMENT FUND Presnenskaya Nab., 8/1 Moscow, Russia, 123317 Tel.: (+7 495) 644-34-14 Fax: (+7 495) 644-34-13