VTB Capital Bank looking for new investment opportunities in the UAE


VTB Capital Bank, the subsidiary of the Russian State VTB Bank, is one of the joint bookrunners for US dollar Sukuk issued by DAMAC Real Estate Development Limited (DRED). And now VTB Group is in search for more investment opportunities in the Middle East financial market with the help of Russian Business Council (RBC).

This is what recently was reported by RBC Vice President and Head of Real Estate Investments Department Oleg Lavrik, for Russian Business Council is a first and major intermediary between Russian business and the UAE authorities at the highest level, including Russian trade representative office in the UAE etc.

Together with BofA Merrill Lynch, Emirates NBD Capital and HSBC, VTB Capital Bank has joined the pool for placing Damac’s US dollar Sukuk (Islamic bonds equivalent) with a circulation period of 5 years, targeting investors for a yield of about 6.5 percent per annum.

Later this year, Hussain Sajwani, Chairman of DAMAC Properties, has announced celebrating the listing of a 500 million US dollar Sukuk, issued by DAMAC Real Estate Development Limited (DRED), on Nasdaq Dubai. DRED is a wholly owned subsidiary of DAMAC Properties PJSC.

DAMAC Properties’ capital-raising initiative, which includes listing on the international exchange, pursues its property development strategy with a footprint extending globally.

The Sukuk received strong interest from institutional investors across Europe and Russia. His Excellency Essa Kazim, Governor of DIFC, Secretary General of DIEDC and Chairman of DFM, said: “DAMAC Properties’ strategy to raise capital through Sukuk underlines Dubai’s growth as a centre for both issuance and listing of this important asset class, drawing on the abundant Islamic finance expertise that is based in the Emirate. Sukuk play an important role in the initiative for Dubai to be the global Capital of the Islamic Economy launched by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, the Vice President and Prime Minister of the UAE and Ruler of Dubai.”

Dubai’s Sukuk listings have now reached a total nominal value of 53.71 billion US dollars, the highest amount of any listing venue in the world.

This is another reason for VTB Group now to actively seek for new effective real estate assets listing and investment solutions for Russian investors across the Middle East. In 2013, VTB Capital took part in an IPO in the Middle East for the first time, by participating in Damac Real Estate Development Ltd USD 348 million share placement. And now it’s time to expand its presence here.

VTB Capital IM is among Russia’s Top 5 investment management companies by total assets under management. VTB Capital IM’s assets under management grew by over 45% over a couple of previous years and exceeded RUB 208 billion. Through these years, all key areas of the VTB Group were actively developed: retail business, institutional clients’ relationship management, wealth management and management of closed-end mutual funds.

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