RusHydro signs loan agreement with Far East Development Fund for construction of Sakhalin GRES-2
April 5, 2018. Moscow, Russia. PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces the signing of loan agreement with Far East Development Fund (FEDF) for RUB 5 bn to finance construction of Sakhalin GRES-2 infrastructure facilities. The term of the loan is eight years with an interest rate of 5% per annum. RusHydro’s Board of Directors has approved the transaction in February of 2018.
Proceeds of the loan will cover close to half of the infrastructure’s total project cost. The reduced interest rate offered by the FEDF will help lower project’s financing costs and optimize electricity tariffs.
Sakhalin GRES-2 is one of RusHydro’s main investment projects in the Far East, built under the Decree of the President of the Russian Federation. The first phase of Sakhalin GRES-2 is included in the development program of Sakhalin region’s power generating industry and is a priority financing project for the State Commission on the Socio-Economic Development of the Russian Far East.
The new electric power plant built using unparalleled in Russia state-of-the-art technology will replace the current capacity of Sakhalin GRES scheduled for decommissioning. Installed capacity of the first phase is 120 MW with yearly output of 840 million KWh. Brown coal from the local deposits will be the main source of fuel for the power plant.
The information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of RusHydro. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially from these statements. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to RusHydro and its operations.
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