Russian bank targets $500m in London float

ADVISERS to Promsvyazbank, one of Russia’s largest privately owned banks, will today start pre-marketing a planned initial public offering in London aimed at raising up to $500m (£307m), two sources close to the placement said.

The bank asked Russia’s local market regulator earlier this month for permission to list its shares on the London Stock Exchange, marking the first step towards a long-awaited foreign listing.

Promsvyazbank, which is 88.3 per cent owned by billionaire brothers Dmitry and Alexey Ananyev, said at the time it had asked the regulator to approve the listing of up to 25 per cent of its shares in the form of global depositary receipts.

The lender had considered an initial public share offer (IPO) before the global banking crisis of 2008-09 but shelved plans due to the economic climate.

The deal, if successful, would be the biggest among non-state Russian banks since Nomos raised over $700m in an IPO last April.

It would also follow the sale of a $5bn stake in the country’s biggest lender Sberbank.

Last month Promsvyazbank reported a tripling in its first-half net profit to 3.8bn roubles (£72.3m), helped by a sharp rise in interest income.