MOSCOW (Reuters) - Major international banks Goldman Sachs and Credit Suisse have bought small stakes in state-run Bank of Moscow, an encouraging sign for Russia as it considers a broader sale of the state’s financial assets.
As part of a $29 billion fund-raising effort to plug gaps in the budget, Russia is looking at the sale of minority stakes in major state-owned lenders Sberbank SBER03.MM and VTB (VTBR.MM).
Goldman Sachs (GS.N) bought a 3.88 percent stake in Bank of Moscow MMBM.MM, and Credit Suisse CSGN.VX 2.77 percent, the Russian bank said on its website.
Bank of Moscow has a total market cap of $5.1 billion, according to Reuters data.
Earlier this month it sold 22 billion roubles ($728 million) of additional shares to private and public investors at 1,003 roubles per share.
“Some stakes were offered to global banks that understand that the worst is over and that the Russian banking sector provides good opportunities for growth,” said Leonid Slipchenko at Uralsib bank.
Goldman Sachs’s stake is worth about $200 million and Credit Suisses’s around $141 million at the current market price.
The shares were trading up 0.4 percent at 984 roubles at 1510 GMT, a 1.7 percent fall from the offer price on July 14.
The Moscow government directly owns a 46.48 percent stake in the bank. Andrei Borodin, the bank’s chief executive officer, controls 23 percent, together with his advisor Lev Alaluyev.
Reporting by Dmitry Sergeyev, Editing by John Bowker and Will Waterman