Renaissance's Jennings, Partners Owe Firm $700 Million, Vedomosti Reports
Renaissance Capital founder Stephen Jennings and partners borrowed more than $700 million from the Russian investment bank to buy assets in Africa, Vedomosti reported, citing unidentified people familiar with the matter.
Jennings is repaying the debt according to plan, the Moscow-based newspaper reported, citing an unidentified person close to billionaire Mikhail Prokhorov’s Onexim Group, which bought half of Renaissance Capital in 2008, after the loans were made.
Onexim knew of the loans before it agreed to acquire its stake in the firm in September 2008 and made ending the practice a condition of the deal, Vedomosti said. Renaissance Capital had $695 million of debt to shareholders and affiliated parties as of June 30, Vedomosti said, citing Renaissance Financial Holdings Ltd. financial statements.
The Vedomosti article contained “multiple inaccuracies,” Preston Mendenhall, a spokesman for Renaissance Capital in Moscow, said in an e-mailed statement today.
“All loans, including those to related entities, have been disclosed in financial reporting since inception,” Kieran Donnelly, Renaissance’s head of group funding, said in a phone interview. “The rating agencies mention them in their reports and there is full disclosure in our bond prospecti.”
Igor Petrov, a spokesman for Onexim in Moscow, couldn’t be reached immediately when Bloomberg called seeking comment.
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