22 Mar 2019 16:49

Rusnano asset portfolio grew 15 bln rubles in year

MOSCOW. March 22 (Interfax) - The fair value of Rusano's asset portfolio grew nearly 14.9 billion rubles in 2018, twice as much as the 7.7 billion rubles by which it grew in 2017, the nanotechnology corporation's chief, Anatoly Chubais, told Interfax.

The portfolio's growth was one of the main drivers of net profit which, audited to International Financial Reporting Standards (IFRS), swung to 5.3 billion rubles in 2018, from 5.3 billion rubles in 2017, according to Rusnano materials. Net profit to Russian Accounting Standards (RAS) was 890 million rubles.

Chubais said income from the investment portfolio rose 17% to 19 billion rubles, due mostly to income generated by exiting portfolio companies.

The average internal rate of return on 15 portfolio company divestments last year was 18.6%.

Rusnano said in a press release that funding for the investment portfolio grew 62% last year to 17.5 billion rubles, including 12.2 billion rubles of investment in new funds.

As of today, Russia has 97 factories built with Rusnano's involvement. Their sales came to 400 billion rubles last year, Chubais said in the interview.

OJSC Rusnano was established in March 2011 through the reorganization of the government-owned Russian Nanotechnology Corporation, formed back in 2007. The company has since been transformed into a private equity fund, with separate asset ownership and management functions, for which Rusnano Management Company LLC was set up in February 2014. The management company acts as the managing partner for new funds that will be formed from investments by OJSC Rusnano and outside investors. The group also has an Infrastructure and Education Programs Fund.

Rusnano had by the end of 2018 exited 50 projects from the "historical portfolio" worth a total of 70.9 billion rubles, or 3.3 billion rubles more than was invested in them.

New investment funds managed by Rusnano Management Company LLC focus on 12 sectors: healthcare, metallurgy, energy, engineering, instrument-making, chemicals and petrochemicals, electronics, optoelectronics, construction materials, telecommunications, industrial materials and biotech.

New funds set up in conjunction with Rusnano have attracted 58.8 billion rubles of outside investment. Rusnano itself has invested 42.3 billion rubles.

Cumulative nanotech industry product sales since 2011 are over 1.76 trillion rubles, with more than 275 billion rubles of exports.