For the past two years, some of the largest investment banks are trying to limit their overseas presence due to the ongoing global financial crisis. However, on the other side of the Atlantic, VTB Capital (VTB), a Russian investment banking major owned by VTB Group, is planning to fill the void by spreading its tentacles, reported Guardian.
The Russian firm has announced the start of its operations in Dubai, to sell Islamic bonds or sukuk. It intends to take the assistance of a subsidiary of Islamic lender, Kuwait Finance House for the purpose. VTB has already won three mandates, each worth between $100 million and $300 million, from many Russian companies to sell sukuk.
As per industry estimates, with an average growth of 15 to 20%, Islamic banking is one of the fastest emerging financial sectors. VTB is planning to bring many Russian companies and direct wealth from the petro-dollar rich Gulf region to Russia.
Mr. Soloviev, CEO, VTB Capital, said: “Generally speaking there has been very little interaction (between Russia and the Gulf), surprisingly little interaction both at the government level and at the corporate level — we would like to be instrumental in growing that particular interest on both sides,” reported the newspaper.
