December 16, 06

NEWS / Major Japanese Investment Bank Coming Back to Russia

In early 2007, Japanese financial holding Nomura Group, which left Russia after the economic default of 1998, will reopen its representative office in Moscow. The major Japanese investment bank might be targeting investment into the shares of Russian companies, whose IPO in 2007 is estimated at $30-35 billion. Nomura is quite able to compete with US investment banks and to enter the five of leading players in the coming two years.
A source close to Nomura??™s top executives said that the holding plans to open its rep office in Russia in early 2007, which will deal with investment and banking, and corporate clients. Employees for the rep office are already being hired.

It is not the first time for Nomura to be entering Russian market. According to Troika Dialog vice-president Alexei Dolgikh, Nomura dealt with shares of blue chips before the 1998 default. However, the Japanese bank could not be called a leader or an important player. After the default, Nomura left Russia, having lost $600 million.

Nomura??™s interest in working in Russia has revived only recently. In March, Nomura joined the calculated depository of RTS exchange, obtaining the opportunity to trade Russian stocks. In September, the bank announced its intention to develop broker business on international markets, including Russia.

Aton investment company analyst Rustam Botashev said that Nomura can easily compete with major investment banks working in Russia. ???Anyway, Nomura will draw the clients of large Western banks,??? he said. ???In the coming two years, the bank might even enter the leading five.???

www.kommersant.com

Tags: representative office,