Russia's Sberbank launches unit to sell structured products

Sberbank, Russia's top lender has launched Sberbank Merchant Banking within its corporate investment block.

The bank said that the new subdivision will bring together the bank's strategic projects department, currently part of Troika Dialog's investment banking division, and the Sberbank investment team, a 100% subsidiary of Sberbank of Russia.

Sberbank Merchant Banking will be charged with creating a high-yield securities portfolio for the CIB clients and will also include existing clients and those who are potentially interested in CIB products and services including shares, derivatives and structured investment instruments.

The newly-created subdivision will be headed by Oscar Ratsin, who was previously managing director and deputy head of investment banking at Sberbank. In his new position, Ratsin will report directly to co-head of the corporate investment block Alexander Bazarov and Ruben Vardanian, president of Troika Dialog.

"We are constantly improving our client model, unifying and strengthening teams of professionals in various fields and expanding our product offering by including new, more complex financial products and providing clients with new ways to develop their businesses," said Bazarov. "By creating Sberbank Merchant Banking as part of the corporate investment block we are in effect planning to jointly invest our capital in the further development of the companies that are our clients, and also in the future by providing independent investors with the opportunity to invest their funds in Russia's leading companies."

Ratsin said that the new subsidiary will be responsible for growing and diversifying the bank's investment portfolio by adding new securities from various sectors of the economy.

"We are not offering to invest in controlling stakes of companies or to extensively manage their operating activities," said Ratsin. "We see ourselves as a natural partner for Russian companies searching for new financing opportunities as well as for international companies looking to enter the Russian market."