Doha’s new normal

21 May 2013 By Una Galani Follow @ugalani

Doha still has an appetite for financial investments but its targets no longer depend on the Qatari bankroll. Capital is plentiful. The terms of the sovereign fund’s punts on Russia’s VTB and Deutsche Bank suggest the emirate may have to lower its return expectations.

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Qatar will buy about $500 million of the new shares being issued by Russia’s VTB, the bank’s chief executive Andrei Kostin told Reuters on May 21.
The Qatar Investment Authority, alongside funds from Norway and Azerbaijan, will hold more than half the new shares being sold by the bank in a $3.3 billion equity issue.
VTB shareholders exercised their pre-emptive rights to buy 14 percent of the issue of 2.5 trillion new shares offered at 0.041 roubles per share, a 10 percent discount to the last closing price before the issue was announced on April 26.
Three weeks earlier, Qatar invested more than 100 million euros in Deutsche Bank as part of a 3 billion euro cash call, the Financial Times reported on May 20.

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