Renaissance Capital (Russian company)

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Renaissance Capital
Private
IndustryFinance and Investment Banking
Founded1995; 25 years ago (1995)
FounderBoris Jordan, Leonid Rozhetskin, Richard Deitz Edit this on Wikidata
HeadquartersMoscow, Russia
Key people
Ruslan Babaev, Anna Vyshlova, Anthony Simone, Elena Grishina
ProductsInvestment Banking
Websitewww.rencap.com

Renaissance Capital is an emerging and frontier markets focused investment bank founded in 1995 in Russia.[1][2] The firm has offices in Moscow, London, New York, Lagos, Nairobi, Johannesburg, Cape Town, Cairo and Nicosia.[3]

Since 2012, Renaissance Capital has been part of ONEXIM Group, one of the largest private investment holding companies in Russia, owned by Russian billionaire Mikhail Prokhorov.

Renaissance Capital offers investment banking services in debt and equity capital markets, M&A[4], equity and equity derivatives, fixed income, FX and FX derivatives, commodities products[5], prime brokerage[6], research[7], as well as REPO and financing.[8]

The firm has assets worth approximately $3,5 billion and equity of around $433 million, as of the end of 2019, and reported full-year net profit for 2019 of $54,5 million.[9]

History[edit]

Renaissance Capital was established in 1995 by a group of founding partners, including Stephen Jennings, Boris Jordan, Leonid Rozhetskin, Anton Kudryashov and Richard Deitz.

On September 22, 2008, ONEXIM Group and Renaissance entered into a strategic partnership whereby ONEXIM Group purchased a 50% (minus one share) stake in Renaissance Capital for $500 million following the issuance of new equity, commenting that the acquisition “presents the opportunity to take Renaissance Capital to the next level”.[10]

In 2010, Renaissance Capital paid 207 million rand ($27 million) to acquire Barnard Jacobs Mellet Securities Ltd., the South African stock brokerage.[11]

In November 2012, ONEXIM Group acquired further stakes in Renaissance Capital which resulted a full ownership of the investment bank and indirect ownership of an 89% stake in the consumer finance bank Renaissance Credit. Commenting on the deal, Dmitry Razumov, chief executive officer of ONEXIM Group, said “We strongly believe in the strategy of Renaissance Capital and that the financial resources of ONEXIM will only strengthen the unique position of the bank in the markets in which it operates.”[12] The transaction was completed in April 2013, following the receipt of all necessary regulatory approvals.[13]

Renaissance Capital opened an office in Dubai in February 2014[14], and launched trading in the Middle East markets, including UAE, Saudi Arabia, Qatar, Kuwait, Morocco, Oman and Tunisia.[15]

Renaissance Capital has been active in Africa for several years. The firm established a presence on the continent in 2007 with locations in Lagos and Nairobi[16] and opened offices in Johannesburg, Cape Town and Cairo in 2010, 2015 and 2017 respectively.[17][18][19] In March 2015, Renaissance Capital doubled its net profit from core business for the full year 2014, reporting a total operating income of $250 million.[20]

In April 2017, Renaissance Capital announced the upcoming opening of its Cairo office, focusing on investment banking, financing and research, and received its licence to operate in the country later that year.[18]

In July 2019, Renaissance Capital became a trading member of Astana International Exchange (AIX) in Kazakhstan.[21]

Management[edit]

Since April 2017, Renaissance Capital has been led by co-CEOs Ruslan Babaev and Anna Vyshlova, who oversee strategy and the day-to-day operations of the firm. Both Ruslan Babaev and Anna Vyshlova had previously served in management positions at the firm.[22]

Dmitry Razumov is chairman of Renaissance Capital's board of directors, providing oversight and guidance on its strategic development and international expansion and managing the firm's relationships with key clients and stakeholders in all of the firm's markets.[23][24]

Anthony Simone, Renaissance Capital's president, focuses on the firm's international offices and institutional client coverage, as well as regulatory, governance and other corporate matters.[25]

Elena Grishina is Renaissance Capital's CFO. Within this role, she is responsible for Renaissance Capital's financing activities and investor relations.[26]

Temi Popoola is CEO for Nigeria, with a focus on equities and developing the firm's investment banking offering in the country.[27][28]

Amr Helal is CEO for North Africa. He has been with the firm since October 2017 as an independent non-executive director in Cairo. In the capacity of chief executive officer, Amr leads the firm's franchise in North Africa and oversees the company's strategy and senior client coverage in the region. [29]

Stanley Kariuki is CEO and head of equities for Kenya, where he oversees the local team and has responsibility for trading and operations.[30][31]

Marios Hadjiyannakis is CEO for Cyprus. He has the overall responsibility for regional business development, operations and regulatory relations.[32]

Geography[edit]

Renaissance Capital is focused on emerging and frontier markets. The firm has offices in Moscow, London, New York, Lagos, Nairobi, Johannesburg, Cape Town, Cairo and Nicosia.[33]

Cairo serves as the focal point for the firm's activities in the Middle East and North Africa.[33][34] One of the landmark transactions in this region was the first equity placement on the Egyptian Stock Exchange, completed in May 2016 on behalf of Egypt El Mansour & El Maghraby Investment and Development Company through an accelerated book build of Crédit Agricole Egypt SAE shares. Renaissance Capital acted as the sole organiser and bookrunner of the placement.[35] Renaissance Capital's office in Lagos (Nigeria) serves as a hub for the firm's West African operations, and its Nairobi (Kenya) office provides a base for its activities in the east of the continent.[33] The firm has managed transactions in Nigeria, Kenya, South Africa, Ethiopia, Uganda, Rwanda, Tanzania, Egypt and Zambia.[36]

Rankings, ratings and awards[edit]

In 2019, The Banker named Renaissance Capital as the Most Innovative Bank from Central and Eastern Europe in the magazine's annual 'Investment Banking Awards' . In 2018, The Banker named Renaissance Capital the Most Innovative Bank for Emerging Markets in the same annual awards.[37] In May 2020, the eurobond issue led by Renaissance Capital for Ardshinbank was named by The Banker as the most outstanding in its category in Europe.[38]

In 2019, Renaissance Capital was named the Best Investment Bank in Russia in 2018 in the Euromoney Awards for Excellence 2019.[39]

In the 2019 Financial Mail Analyst Awards, Renaissance Capital’s research team was ranked fourth for overall equity research for the second year in a row, with every single one of the South Africa and Sub-Saharan Africa analysts was rated in the top 3.[40]

Product offering[edit]

Renaissance Capital offers a variety of investment banking services in debt and equity capital markets and M&A[41], sales and trading in equity, fixed income, FX and derivatives, hedging, REPO and financing, as well as prime brokerage[42] and research.[43]

The firm has established an algorithmic trading unit as part of its existing derivatives business to meet growing client demand, and capitalise on market opportunities.[44]

Renaissance Capital has acted as organiser on a number of capital markets transactions in Russia, including: Beeline $127.4 mn IPO on NYSE in November 1996 – the first IPO out of Russia[45]; ALROSA $1.3bn IPO in October 2013 – the largest IPO ever on Moscow Exchange[46];RUSAL $2.24 bn IPO in January 2010 – Hong Kong’s first ever offering by a Russian company[47]; as well as major retail IPOs – Rosneft $10.7 bn IPO in July 2006[48] and VTB c.$8 bn IPO in May 2007[49].

In the frontier and emerging space, Renaissance Capital has organised a number of pioneering transactions including the following:

  • A GEL500 million three-year senior bond issue for Bank of Georgia, the first-ever local currency international bond issue out of Georgia.[50]
  • A RUB15bn issue for Kazakhstan Temir Zholy (KTZ), the state railway company of the Republic of Kazakhstan, the first corporate issue for a foreign borrower in the Russian domestic rouble market.[51]
  • A $350 million eurobond sale for Eurotorg, the first corporate international bond issuance by a Belarussian company[52][53].
  • Nigeria's NGN10 billion debut corporate infrastructure bond for Viathan Group, a private equity-backed company, providing power solutions to the government, household and businesses in Nigeria, using natural gas as fuel.[54]
  • A UGX167bn IPO of CiplaQCIL, a Uganda-based pharmaceutical producer of high-quality and affordable life-saving medicines, on the Ugandan Stock Exchange.[55]
  • The Bank of Kigali Group rights issue and private placement, which raised c. KES7bn, making it the largest-ever capital raise in Rwanda and the largest capital markets transaction in East Africa in 2018.[56]
  • Gazprom’s CHF750mn international bond issue with the 1.45% coupon rate, the lowest-ever coupon by an emerging markets (EM) corporate.[57]
  • A CHF200mn four-year issue for Africa Finance Corporation, with the lowest coupon an African issuer has ever achieved in the CHF market.[58]
  • Debut $300mn international bond issue[59] and debut $125mn additional tier 1 issue for TBC Bank – the largest ever amount issued by a Georgian bank in AT1 format.[60]

References[edit]

  1. ^ "Subscribe to read". Financial Times. Retrieved 1 August 2018.
  2. ^ "Subscribe to read". Financial Times. Retrieved 1 August 2018.
  3. ^ http://www.rencap.ru/ContactUs/ByLocations/?reg=5
  4. ^ http://www.rencap.ru/We_do/InvestmentBanking/
  5. ^ http://www.rencap.ru/We_do/GlobalMarkets/
  6. ^ http://www.rencap.ru/We_do/PrimeBrokerage/
  7. ^ http://www.rencap.ru/We_do/Research/
  8. ^ http://www.rencap.ru/We_do/GlobalMarkets/
  9. ^ https://www.rencap.com/News/PressReleases/?id=600
  10. ^ "ONEXIM Group and Renaissance Group Form Strategic Partnership in Investment Banking" (PDF). Onexim.org. Retrieved 1 August 2018.
  11. ^ "Rencap buys Bernard Jacobs Mellet for R207m". Mg.co.za. Retrieved 1 August 2018.
  12. ^ "::ONEXIM::Media Centre::Press Releases and Statements". Onexim.org. Retrieved 1 August 2018.
  13. ^ "::ONEXIM::Media Centre::Press Releases and Statements". Onexim.org. Retrieved 1 August 2018.
  14. ^ "RenCap to Arqaam expand in MEA". Khaleejtimes.com. Retrieved 1 August 2018.
  15. ^ http://www.rencap.ru/News/PressReleases/?id=468
  16. ^ "Renaissance Capital founder Jennings plans to double investment in Africa - IOL Business Report". Iol.co.za. Retrieved 1 August 2018.
  17. ^ "RenCap opens new Cape Town office". Globalcapital.com. Retrieved 1 August 2018.
  18. ^ a b "Renaissance Capital to open Egypt office". Reuters.com. Retrieved 1 August 2018.
  19. ^ "Renaissance Capital opens South African offices". Reuters.com. Retrieved 1 August 2018.
  20. ^ http://www.rencap.ru/News/PressReleases/?id=468
  21. ^ https://www.aix.kz/news-announcements/aix-news/kazpost-jsc-and-renaissance-capital-have-become-trading-members-of-aix/
  22. ^ http://www.rencap.ru/News/PressReleases/?id=516
  23. ^ http://www.rencap.ru/InvestmentBanking/BoD/?id=6
  24. ^ "MOVES-Renaissance Capital appoints new co-CEOs". Finance.yahoo.com. Retrieved 1 August 2018.
  25. ^ http://www.rencap.ru/InvestmentBanking/Management/?id=19
  26. ^ http://www.rencap.ru/InvestmentBanking/Management/?id=20
  27. ^ "MOVES-Renaissance Capital names Temi Popoola CEO of Nigerian business". Reuters.com. Retrieved 1 August 2018.
  28. ^ http://www.rencap.ru/InvestmentBanking/Management/?id=28
  29. ^ http://www.rencap.ru/InvestmentBanking/Management/?id=29
  30. ^ "Renaissance Capital in growth mode in Africa". News.efinancialcareers.com. 21 September 2012. Retrieved 1 August 2018.
  31. ^ http://www.rencap.ru/InvestmentBanking/Management/?id=30
  32. ^ http://www.rencap.ru/InvestmentBanking/Management/?id=32
  33. ^ a b c "Restructured Renaissance Capital picks its battles". Euromoney. Retrieved 1 August 2018.
  34. ^ "Where to Invest During the Qatar Diplomatic Crisis". Bloomberg.com. Retrieved 1 August 2018.
  35. ^ http://www.rencap.ru/News/PressReleases/?id=500
  36. ^ http://www.rencap.ru/We_do/InvestmentBanking/ECMTransactions/
  37. ^ https://www.thebanker.com/Awards/Investment-Banking-Awards/The-Banker-s-Investment-Banking-Awards-2018?ct=true
  38. ^ https://www.thebanker.com/World/Ardshinbank-s-eurobonds-recognised-as-Deal-of-the-Year
  39. ^ https://www.rencap.com/News/PressReleases/?id=574
  40. ^ https://arenaevents.africa/financial-mails-top-analysts-for-2019-have-been-announced/
  41. ^ https://www.rencap.com/We_do/InvestmentBanking/
  42. ^ https://www.rencap.com/We_do/PrimeBrokerage/
  43. ^ https://www.rencap.com/We_do/Research/
  44. ^ https://www.rencap.com/News/PressReleases/?id=531
  45. ^ https://www.veon.com/media/media-releases/archive/vimpelcom-celebrates-the-10th-anniversary-of-its-nyse-listing/
  46. ^ http://eng.alrosa.ru/about-us/history/
  47. ^ https://rusal.ru/en/about/facts/
  48. ^ https://www.rosneft.com/press/releases/item/114539/
  49. ^ https://www.vtb.com/o-banke/gruppa-vtb/istoriya/
  50. ^ "Bank of Georgia hires JP Morgan, Renaissance Capital for Eurobond..." Reuters.com. Retrieved 1 August 2018.
  51. ^ "New bond issue: Kazakhstan Temir Zholy issued international bonds (XS1713475132) with a 4.85% coupon for USD 780.0m maturing in 2027". cbonds.com. Retrieved 1 August 2018.
  52. ^ "Subscribe to read". Financial Times. Retrieved 1 August 2018.
  53. ^ "Eurotorg shops for debut bond, but even 9%-10% bargain yields may struggle to entice investors given bagful of concerns – Deal Preview". Debtwire.com. 20 October 2017. Retrieved 1 August 2018.
  54. ^ "Private equity-backed Viathan issues Nigeria's debut 10-year..." Reuters.com. Retrieved 1 August 2018.
  55. ^ https://www.reuters.com/article/uganda-ipo/corrected-ugandan-unit-of-indian-drugs-firm-cipla-raises-438-mln-in-ipo-renaissance-capital-idUSL8N1W32AW
  56. ^ https://www.theeastafrican.co.ke/business/Bank-of-Kigali-finally-cross-lists-at-Nairobi-bourse/2560-4875764-5d0bww/index.html
  57. ^ http://cbonds.com/emissions/issue/413475
  58. ^ https://www.africafc.org/News-Events/News-Press-Releases/Africa-Finance-Corporation-Issues-CHF200-Million-4.aspx
  59. ^ https://www.investegate.co.uk/tbc-bank-group-plc--tbcg-/rns/tbc-bank-prices--300-mln-senior-unsecured-notes/201906121720010249C/
  60. ^ https://markets.ft.com/data/announce/detail?dockey=1323-14126024-7HO29KNVVURSVU0GI24BI0S4B2