21 June 2017
Renaissance Capital holds 21st Annual Russia Investor Conference

Forecasts stable growth potential for the Russian economy

Moscow, 21 June 2017 – Renaissance Capital, a leading emerging and frontier markets investment bank, held its 21st Annual Russia Investor Conference in Moscow on 19-21 June 2017. The conference is a widely-respected forum for leaders within the global and Russia-based business and investment communities to meet and exchange their views on the opportunities held by the country.

This year, around 150 business and investment professionals from Russia’s leading companies and global investment funds attended the conference with closed-door discussions hosting top Russian government, business and opinion leaders.

The conference built on the discussions held last year, which saw the first encouraging signs of the Russian economic recovery. During the event, Renaissance Capital's leading analysts and strategists confirmed the Firm's Overweight recommendation on Russia, noting that the economic recovery is continuing to materialise as we move into the second half of 2017.

Further evidence of Russia's broad macroeconomic improvement is supported by a growing pipeline of deals coming out of the country. Renaissance Capital has been delighted to complete a number of complex equity and debt capital markets transactions in recent months, including, among others, two Eurobond issuances for State Transport Leasing Company (GTLK) (both USD500mn); Rusal's debut five-year USD600mn Eurobond note, Polyus Gold's USD800mn Eurobond issue and KTZ Finance's RUB15bn bond placement on the Moscow Exchange, which is the first foreign corporate debt issuance on the domestic market.

Christophe Charlier, Chairman of the Board, Renaissance Capital, commented: "We are glad to see a renewed interest and revived activity in the Russian investment banking business on the backdrop of the improving macroeconomic climate. Amid ongoing uncertainty in the global markets, investors are looking with keen interest for alternative sources of growth. Hence, we believe that Russia will remain a rediscovery story for investors in 2017. Operating in 43 markets globally, the Firm has an excellent platform to use this momentum to its advantage and introduce attractive investment opportunities in Russia and beyond to investors from all corners of the world."

Daniel Salter, Head of Research, Eurasia, Renaissance Capital, added: "We expect a broad Russian macro recovery in 2017. Inflation has almost reached the Central Bank's target of 4%, the rouble has significantly strengthened since January 2016, and there is further potential for stronger-than expected interest rate cuts. We forecast Russian GDP growth of 1.7% and 2% over the next two years, and look forward to seeing the longer-term effect of the potential reforms on the economy."  

The Firm also held a media roundtable discussion entitled “Russia: What Next?” on the conference's opening day, led by Daniel Salter and Oleg Kouzmin, Renaissance Capital's Russia and CIS Economist. The debate noted the country's improvement in the Ease of Doing Business ranking (from #123 in 2011 to #40 2016), as well as possible further reforms following the 2018 elections, including progress on changes to the legal and pensions systems and potential privatisation efforts.