The Public Investment Corporation (PIC), South Africa’s public asset management firm with over R1.6trn AUM ($107bn), and Russia’s Gazprombank have signed a Cooperation Agreement to establish cooperation between the two entities and, where possible, facilitate business cooperation between South Africa and the Russian Federation.

Daniel Matjila, PIC CIO, said: “The agreement with Gazprombank complements our efforts to deliver on our developmental investment mandate. This will further assist us in delivering on the rest of Africa strategy which seeks to generate returns while simultaneously assisting the continent to realise its full potential.”

This cooperation will see the two entities focus on several areas of interest, within South Africa and countries in the Sub-Saharan African region, including investment banking, capital markets and securities transactions, trade finance, asset management, private equity, as well as project, leveraged and structured finance.

The project, leveraged and structured finance area of interest, specifically, will expand on direct and indirect financing of projects in the field of natural gas, oil, petrochemicals, mining and mining infrastructure, green energy, as well as other sectors of mutual interest in the future.

The PIC and Gazprombank will endeavour to collaborate on capacity building and skills transfer in identified areas of finance, credit analysis, environmental and social analysis, as well as information and research sharing to enhance economic sector knowledge.

Gazprombank has successfully operated in the banking market since 1990.

Founded by the world's largest gas producer and exporter Gazprom to provide banking services for gas industry enterprises, Gazprombank has since become a leader in the banking sector, which key performance indicators place the Bank among the top three banks of Russia.

Alan Vaksman, Deputy Chairman of the Management Board of Gazprombank (OJSC), said: “Gazprombank has already started working with a number of projects of mutual interest to the South African and Russian companies.”

“We hope that the signing of this Cooperation Agreement provides us with the opportunity to begin the discussions regarding the co-financing of these projects with the PIC. The PIC is a valuable partner for Gazprombank and our cooperation will explore new horizons for both companies,” he added.