The government will involve the privatization of pension funds

Deputy Economic Development Minister Nikolai Podguzov

The Ministry of economic development held several meetings with the largest private pension funds and discussed the possibility of their participation in the privatization, said Deputy economic development Minister Nikolai Podguzov on the Exchange forum. “Funds are interested in buying shares, they have the resources,” he said.

All three transactions, according to Podguzov, should pass this year, but the exact date he did not name, saying that everything will depend on market conditions. At the same time as the key investors the Ministry is ready to consider NPF.

Podguzov said that the funds there are a number of conditions for participation in privatization. “We have a priority in participation in the privatization of national investors”, — said the Deputy Minister. However, the government is not willing to offer them a discount, since the shares are at attractive levels, he added.

During the privatization of Russian investors, in particular pension funds, can be key. “I think not that preferences, and from the point of view targeting as the target investor base; it will probably be Russian investors, in particular pension Fund”, — said Podguzov. He explained that the applications of SPC, for example, when high demand can be fully satisfied unlike other categories of investors. “For example, we have a demand for 100 rubles, the shares are sold at 50 rubles each his bid to halve, can, targetarea a certain investor base, whose requests to be reduced in two times, and someone to satisfy in full. I believe that it is quite possible,” he said.

As previously wrote the newspaper “Vedomosti”, in March the Ministry of economic development has sent the largest private foundations letter of offer “before 1 April,” to provide information “on interest to invest” savings and corporate pensions “in the assets of Russian companies during their privatization”, and called “acceptable conditions and parameters” for the Fund’s participation in the privatization. Their interest in participating has confirmed the criminal code “Leader”, one of the largest management companies of pension funds. Leadership “the Leader” has offered to create a consortium of investors with participation of large pension funds, writes the edition with reference to sources in the financial-economic bloc of the government.

Assessment of PSB, means that SPC may direct the purchase of securities, amount to about 350 billion rubles from the Amount of privatization that would like to have a state — 700 billion roubles. “Thus, the NPF may become significant investors in the privatization. However, the main problem, in our view, is the risk that the funds may take on (or increase it with the purchase of the shares). Pension funds generally adhere to conservative investment policy, and this increased risk will seriously increase the volatility of their yields,” notes the analyst of PSB Alexey Egorov.

Podguzov said that the choice of the Russian investment banks as agents for privatisation is due to the presence of their significant experience in placing companies on the Russian market. “For them there has been the most votes. We see that the situation is evolving towards a more active participation of local investors. In addition, one of the priorities for us is the placement of shares on the Moscow stock exchange”, — said the Deputy Minister. He did not rule out participation in the privatization and foreign investment banks, if agents deem it necessary to involve them as co-organizers. According to Podguzov, the applications for participation filed five foreign banks, among which are American and European.