Clifford Chance

Clifford Chance advises China Construction Bank on VTB stake

Beijing: Leading international law firm Clifford Chance has advised China Construction Bank on its US$100 million subscription of a minority stake in JSC VTB Bank, a Russian bank listed on Moscow Exchange (MICEX) and London Stock Exchange (LSE), through an open subscription.

Through the open subscription, JSC VTB Bank has raised approximately US$3.3 billion (Ruble 102.5 billion) by issuing 2.5 trillion new ordinary shares at a price of Ruble 0.041 per share. The bank intends to raise funds to shore up its capital.

The acquisition of the minority stake in VTB Bank follows an agreement signed in March between the two parties to promote mutually beneficial cooperation and to coordinate the investment activity of the two companies. Specifically, the agreement envisages a partnership in investment and banking services.

"Chinese outbound investments will continue to rise as Chinese companies increasingly look at emerging markets such as Russia and Indonesia as engines for growth," said Corporate partner Terence Foo.

Partners Terence Foo and Tim Wang led on the deal and were supported by senior associate Yan Yuan in Beijing, working closely with partners Alexander Anichkin and Arthur Iliev in Moscow.