Tatarstan in the capital markets

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Tatarstan in the capital markets

Tatarstan is the most progressive Russian region after Moscow and St Petersburg in attracting foreign portfolio investors, with a successful record in attracting loan financing, Eurobond financing, and equity investment. And the republic is only going to become a bigger presence on the international capital markets as a new raft of IPOs is prepared, with a potential deal volume of over $4 billion.

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The Republic’s biggest company, Tatneft, already has long experience of international equity markets, having listed on the LSE back in 1996, in one of the first full listings done by a Russian company outside of Russia. Its share price then was $1; it had risen to $420 by 2005. "It’s a unique story in terms of its capitalization growth", says Tatneft’s general director, Shafagat Takhautdinov.

Other companies from Tatarstan are now preparing to follow Tatneft’s lead into international equity markets. Marc Holtzman, vice-chairman at ABN Amro, says: "There’s at least half a dozen strong candidates for IPOs here."

And the good news, says Holtzman is that "Tatarstan isn’t just on our radar, but its attracted the attention of a lot of other western investment banks and advisers, looking to help guide Tatarstan companies to the market."


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