26 March 2020
Renaissance Capital posts healthy financial performance in FY19
  • Operating income marginally up YoY at $145.8mn
  • Net profit at $54.5mn
  • Equity-to-assets ratio at 12.2% 
  • Total assets and equity at $3.5bn and $433mn, respectively

Renaissance Capital, a leading emerging and frontier markets investment bank, today announced its IFRS financial results for the full year ending 31 December 2019.

Operating income was steady at $145.8mn. Operating expenses remained under control and amounted to $128.5mn. The equity-to-assets ratio edged up to 12.2%. Total assets and equity amounted to $3.5bn and $433mn, respectively, as of 31 December 2019.

During the reporting period, net profit came in at $54.5mn. The increase is partially due to the Firm releasing $43mn in reserves on the back of receivables repaid by its shareholder ONEXIM Group.

In FY19, Renaissance Capital was able to diversify its revenue pool across core businesses – cash equities, bonds, derivatives and investment banking.

The Firm’s investment banking division led over 30 true-market transactions with a total value of more than $8bn, the majority of which happened in debt capital markets, with many emerging and frontier markets issuers striving to take advantage of low interest rates globally.

Landmark transactions in FY19 include, among others:

  • $700mn five-year benchmark bond issue for Evraz, a FTSE100 company and a blue-chip EM issuer
  • $460mn acquisition of 25% in Etalon Group PLC and simultaneous sale of 51% in Leader-Invest by Sistema – a complex transaction that involved two LSE-listed companies
  • $500mn five-year benchmark 144(A) / Reg S bond issue for Uralkali, one of the largest potash producers in the world, with one of the lowest yield / coupon rates for Russian or regional corporate borrowers with comparable ratings
  • $550mn six-year benchmark eurobond for STLC with the lowest coupon ever achieved by the company
  • CHF200mn four-year Reg S benchmark issue for Africa Finance Corporation, with the lowest coupon an African issuer has ever achieved in the CHF market
  • Debut $300mn international 144(A) / Reg S bond issue and debut $125mn additional tier 1 issue for TBC Bank – the largest ever amount issued by a Georgian bank in AT1 format
  • Debut benchmark $300mn Tier II bond issue for Sovcombank, one of the largest private banks in Russia

Following the Annual General Meeting, Dmitry Razumov has been elected as Chairman of the Board of Directors of Renaissance Financial Holdings Limited (“RFHL”), being the holding company of Renaissance Capital. ONEXIM Group has decided not to renew Christophe Charlier director’s mandate.

Dmitry Razumov is CEO of ONEXIM Group, a private investment fund with a diverse portfolio of assets, including Renaissance Capital. Dmitry has served on the Board of RFHL since 2009 and previously chaired its Board from 2013 to 2017. In the early years of his career (1997-1999) he worked in investment banking at Renaissance Capital.

Dmitry Razumov, Chairman of the Board of Directors, Renaissance Capital, said: “We are grateful to Chris for the three years of his chairmanship and for being instrumental in enhancing Renaissance Capital’s franchise globally. ONEXIM Group remains committed to Renaissance Capital. As a shareholder, we are happy with the Firm’s strategy and nimble business model, which are working well in both a growth and challenged environment.”

Ruslan Babaev, Co-CEO, Renaissance Capital, commented: “As we publish these FY19 results, financial markets globally are experiencing an extraordinary challenge due to COVID-19. Renaissance Capital has invoked its Business Continuity Plan to ensure continuity of service to our clients on a business as usual mode. In 2019, we were able to take advantage of the benign environment for frontier and emerging debt issuers and continued to introduce new stories and regions to the investment community. An important milestone for the Firm was tapping the green finance territory with a truly pioneering debut EUR325mn green bond for DTEK Renewables, a wind energy company from Ukraine, and further green financing deals in other regions in our pipeline. On the ECM side, we successfully completed several cherry-picked deals, including a follow-on offering of Halyk Bank and the privatisation SPO of Kazatomprom – both in Kazakhstan, and the IPO of Helios Towers in Sub-Saharan Africa, the largest IPO out of Africa in two years.

Anna Vyshlova, Co-CEO, Renaissance Capital, added: “The world is taking significant steps to mitigate the impact of the COVID-19 virus. At Renaissance Capital, our foremost priority is to protect the health of our staff, our clients and communities where we live and work. In such challenging times, we remain as ever committed to our nimble business strategy and a leading EM and FM institutional and private client offering. Our Research, Sales and other teams are working hard to allow our clients to stay ahead of the curve.

“Last year, we organised over 200 investor events, including roadshows, capital markets days, investor trips and four annual flagship conferences for North Africa, Pan-Africa, East Africa and Russia & CIS. We added new geographies and markets through new exchange memberships on AIX (Kazakhstan) and SPB Exchange (Russia), as well as through third-party brokerages. In the light of the new norms of conducting business, we are reviewing the formats of our investor events and available technologies and are making sure our clients continue getting access and insights into the markets of our operations.”