Russia's RDIF to Invest in Sovcomflot: Press

The Russian Direct Investment Fund (RDIF) is looking to invest in 100% state-owned shipping giant Sovcomflot, the sovereign wealth fund's head Kirill Dmitriev was cited as saying by Interfax on September 24.

Sovcomflot is due to undergo an initial public offering (IPO) in October at the Moscow stock exchange, Russia's finance ministry said earlier this month. The aim is to raise $500mn, and Sovcomflot plans to use these proceeds to settle some debt and invest in new projects.

The 100% state-owned company, which earned $823mn in core earnings (Ebitda) last year, owns nearly 150 tankers, dry cargo ships and other vessels, including 15 LNG carriers. Its IPO was first proposed nearly two decades ago, and talk of the company's partial privatisation has ebbed and flowed ever since.