Renaissance Capital Acquires Leadbank From Bank of Cyprus
Renaissance Capital announced yesterday that it will be purchasing 100% of the equity of Cyprus’s Leadbank (formerly Bank of Cyprus) for an undisclosed sum.
Leadbank LLC, which was established in April 2007 as Bank Kypra LLC, operated through a single Moscow branch and was basically a shell following Bank of Cyprus’s consolidation of its Russian operations in 2009. At that point, 100% of the bank’s loan portfolio was sold to 80% Bank of Cyprus subsidiary Uniastrum Bank, which has a network of 220 branches throughout Russia.
According to Bank of Cyprus, the sale will be at a premium to the net asset value of Leadbank LLC, which was around €11.7 million as of December 31, 2009.
The private equity acquisition is still pending approval by the Central Bank of Russia.
The acquisition is part of a move by Renaissance Capital to develop dedicated in-house FX capabilities to provide their clients with structured interest-rate and commodity-price hedging products. The group will offer foreign exchange derivatives, structured products and FX spot trading services. Yury Gruzglin, formerly head of the Debt Product Group has been appointed Global Head of Fixed Income, Currencies and Commodities and will head the FX group.
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