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Meeting with General Director of DOM.RF Vitaly Mutko

October 20, 2025, The Kremlin, Moscow

The President held a meeting with General Director of DOM.RF Vitaly Mutko in the Kremlin to discuss plans for the state corporation’s IPO.

President of Russia Vladimir Putin: Good afternoon.

Mr Mutko, the company is preparing for an IPO. How is the work progressing?

General Director of DOM.RF Vitaly Mutko: Mr President, thank you very much.

About eight months ago, you instructed us to begin this work. It is indeed a very important step for us. DOM.RF has been operating for 28 years, and over the past five years we have seen significant growth. As you know, our assets have increased five-fold during this period, and we have effectively become a market-driven company. We are no strangers to the stock market – all our current investments in the housing sector are financed through market instruments.

Today, our assets total six trillion rubles, a five-fold increase in five years, while profits have tripled. Last year, our profit was close to 70 billion rubles, this year it will reach about 90 billion, and next year we expect to stabilise at around 100 billion.

For the past five years, we have been paying dividends. Our return on equity remains steady at about 20 percent, and our earnings per share are around 10–11 percent. Naturally, this generates strong investor interest.

Vladimir Putin: Good.

Vitaly Mutko: Yes, and it is worth noting that this is the first IPO by a financial market company in 18 years, since Sberbank. Today, we rank among the ten largest companies in Russia. We plan to raise between 15 and 30 billion rubles by placing around ten percent of our shares on the market.

Vladimir Putin: And how will the proceeds be used?

Vitaly Mutko: Primarily for investment. As you know, our business is focused on supporting the housing sector and improving living conditions. Most of the funds will go towards project financing: we plan to finance around one million square metres of housing, which will allow some 15,000 families to improve their living conditions. We will also invest about 50 billion rubles in regional infrastructure development and continue to expand our socially responsible projects.

We are now at the final stage of preparation. Together with the Bank of Russia, the Moscow Exchange and the Government, we have resolved all organisational issues, amended our charter and registered the share prospectus with the Central Bank.

The goal you have set – to ensure that the capitalisation of Russia’s stock market reaches 66 percent of GDP by 2030 – is a very ambitious one. It cannot be achieved without bringing state-owned companies to the public market. This places additional responsibilities on us.

First, we will have to strengthen our corporate governance and become more transparent. Financial reporting, international standards, audits, independent board members, management dedication – these are the requirements that the market expects us to meet. We are confident that we will cope.

Of course, Mr President, after our IPO, when we become a public company, we intend to keep our main focus: developing the housing sector and supporting citizens. We will continue to serve as a development institution.

Vladimir Putin: You began this work back in 2024.

Vitaly Mutko: Yes, we did. Since then, we have held around a hundred meetings with listed companies and investment funds. We expect our shareholders to include large investment and pension funds, institutional investors like that. The market is opening up, and with our dividend yield of around 11–12 percent per share, we anticipate strong interest.

Vladimir Putin: I think so too. If you maintain a responsible dividend policy, your shares will certainly be attractive to investors.

Vitaly Mutko: Our new strategy through 2030 is built around raising market capital, maintaining a dividend payout ratio of at least 50 percent, and doubling our assets. By 2030, we plan to reach total assets of 11 trillion rubles – twice as much as today. All of these investments will go into the housing sector. We will continue to act as the state’s agent.

Vladimir Putin: But not just in housing – in infrastructure as well.

Vitaly Mutko: Absolutely. We are active in about ten segments, all of which have been growing alongside the market. Your support for housing construction and urban development, including master planning, is central to our work. We will remain the operator of all mortgage programmes. So far, around four million people have received mortgage loans, and some 15 million have invested in housing. We have been the operator of all these programmes.

We will continue to support mortgage loans through securitisation of loans. We issued bonds, collected the money, and supported the banks. They freed up capital. One in eight mortgage loans was issued using our mechanisms.

Furthermore, we are engaged in the technological re-equipment of the industry which includes digital services, an information system, our websites, and the recently launched Stroim.Dom.RF for private housing construction.

Furthermore, we will continue to act as the state’s agent for land development. These are inefficient lands. We have brought approximately 35,000 hectares of land into development, with an urban development potential of approximately 35 million square metres. But our goal is not just to bring it into development, but to build housing on this land.

Mr President, we even have examples. Integrated territorial development and housing construction are, of course, our area of expertise. By 2030, 100 million square metres, or ten percent of the portfolio, should be built using our mechanisms.

Of course, we are developing the rental business. We are currently the largest holders, with one million square metres available for rent by students and other tenants.

We are almost done with fulfilling your instruction: 10,000 flats in the Far East. There are some good examples there. This year, we have tenants move into 1,500 new flats. We have financed 11,000 flats, and now we have tenants move into the last one in Magadan in the Far East. Overall, we have invested 87 billion as a result of this work.

I believe the Government has reached out to you. You have instructed us to extend this project to the Arctic zone. We are prepared to finance 400 rental flats in Murmansk and Arkhangelsk, as well.

Vladimir Putin: (Looking at the presentation.) Are you transforming Father Frost’s homeland?

Vitaly Mutko: You set the goal of developing 200 master plans for urban areas. We have been working on this since 2016 and have developed 60 master plans.

The birthplace of Father Frost: together with our colleagues from the Vologda Region and AFK Sistema, we have begun developing this master plan. I remember five years ago you told us to create decent recreational conditions for people, a year-round recreation centre.

We continue working on the Arkhitektory.rf programme.

We have launched two new programmes. The first one pertains to leasing municipal equipment in partnership with the Ministry of Industry and Trade. You are aware that the production has slowed, primarily with respect to agricultural equipment. The Ministry of Industry and Trade proposed that we launch such a programme. It will cost 300 billion rubles.

We are issuing bonds, borrowing money, subsidising leasing companies. They order agricultural machinery and municipal utility equipment from factories and then lease it out. We charge 6.5 percent, they charge ten percent. We now have 300 billion, and we have already financed ten. We have launched a new project. And I believe it can be further developed, because we see that the market can absorb 120–130 billion annually.

Vladimir Putin: Mr Mutko, I looked at your documents as well. Do you think the volume of mortgage loans will decrease by 20 percent this year?

Vitaly Mutko: Yes.

Vladimir Putin: But the funds will not decrease. How so?

Vitaly Mutko: Mr President, please, look at the structure of housing purchase. After all, the most important thing for construction is how much money comes into the primary market. If you look at it, all these years, somewhere between 80–90 percent of housing purchases were made with mortgage loans exclusively.

But the housing structure has changed; now 65 percent are purchased using mortgage loans, while in previous years, it was 80, and 35 percent are now buying with their own money. Monetary policy has begun to ease, and even market mortgage lending has seen some recovery.

In recent months, we have seen that what previously was 10,000–13,000 mortgage loans a month, now is up to 23,000.

But the most important factor, I want to thank you again, because I remember we discussed it here: you insisted on transitioning the industry to project financing. I believe this is a fundamental decision, and thanks to it, construction has been thriving throughout these difficult 18 months. Currently, nearly 119 million square metres of housing are under construction, with project financing open for 21 trillion rubles, and 9.7 is under regular financing. This mechanism greatly balances housing construction. Therefore, of course, I believe this is a fundamental reform.

Vladimir Putin: The correct decision.

Vitaly Mutko: Absolutely.

Therefore, Mr President, overall, we expect that by attracting resources and accessing the public market, we will maintain our focus on developing the housing sector, supporting people, maintaining all our functions as a development institution, and will simply work more efficiently and responsibly. Because we do not have just one shareholder; there will be many more shareholders to whom we will be accountable, transparent and public.

Vladimir Putin: I wish you success.

Vitaly Mutko: Thank you very much.

October 20, 2025, The Kremlin, Moscow