RusHydro and VTB Bank agreed to improve terms of the forward contract
September 5, 2019. Vladivostok, Russia. PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces signing an agreement of intent with VTB Bank to improve the terms of the forward agreement.
Both parties agreed on further steps to improve terms of the forward contract. Those steps should include lowering the forward rate by 0.5% p.a. and extension of the agreement for three years through 2025. RusHydro and VTB will also seek to jointly work on increasing the share price of RusHydro.
Nikolay Shulginov, Chairman of the Management Board – General Director of RusHydro and Andrey Kostin, President and Chairman of VTB Bank Management Board signed an agreement of intent at the Fifth Eastern Economic Forum to improve the terms of the forward agreement, which both parties signed in March 2017 in order to refinance RAO ES East subgroup’s debt. Initial deal not only has improved the financial position of the Group’s far-eastern subsidiaries but also paved the road for amendment of the company’s dividend policy.
Nikolay Shulginov commented: “The transaction to refinance debt of the company’s far-eastern subsidiaries is by far RusHydro’s major project with our strategic partner, VTB Bank. We have agreed on improvement of terms of the forward contract and signing of a supplementary agreement to the existing one as we hope such action will yield economic benefits for both parties”.
Andrey Kostin, President and Chairman of VTB Bank Management Board added: “We continuously develop cooperation with RusHydro by providing a wide range of financial services and products. Thanks to the RUB 55 bn forward contract, RusHydro is implementing its strategic plan to develop the Far East. The deal has fostered investment to the region, which brought with it modernization of power assets in the Far Eastern Federal District”.
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 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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