07.08.2009
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JSC RusHydro Announces the Conversion of its Regulation S GDRs into Level 1 ADRs

SC RusHydro announces the conversion of its Regulation S GDR program into a Level 1 ADR program.

 

RusHydro (RTS, MICEX, LSE: HYDR), Russia’s largest power-generating company and the largest publically listed hydro-generating energy company, has launched a Level 1 American Depositary Receipt (ADR) program in respect to the Company’s ordinary shares.  

 

The United States Securities and Exchange Commission (SEC) registered the statement with respect to the ADRs and declared it effective as of August 7th, 2009. Each ADR in the new program represents 100 (one hundred) ordinary shares of JSC RusHydro.

As part of the launch of the new Level 1 ADR program, JSC RusHydro’s existing Regulation S GDR program is terminated, Regulation S GDRs excluded from the London Stock Exchange quotation list and cancelled. All Regulation S GDR holders received the appropriate quantity of Level 1 ADRs which are included into the London Stock Exchange quotation list on August 7th, 2009at the moment of issuance.

 

The newly launched Level 1 ADR program will be traded on both the Main Market of the London Stock Exchange, as well as on the OTC market in the United States since August 7th, 2009.

 

The Bank of New York Mellon (BNYM), which has a long history of serving Russian clients in the power sector, will be acting as the depositary for JSC RusHydro’s ADR program and ING Bank (Eurasia) ZAO will serve as the global custodian bank for the ADR program.  

 

The Level 1 ADR program is expected to provide access to the Company’s shares to a wider range of investors and to stimulate greater liquidity in JSC RusHydro’s program. Working in conjunction with The Bank of New York Mellon (BNYM), JSC RusHydro plans to continue developing investor relations activities aimed at increasing the liquidity of the Company’s securities.

 

Vasily A. Zubakin, RusHydro’s Acting Chairman of the Management Board: "Our Company is dedicated to consolidating its position as the most liquid stock in the Russian energy sector, since liquidity is a necessary building block for promoting shareholder value. We believe that converting our existing Regulation S GDR program into a Level 1 ADR program is the next logical step in our effort to build liquidity.  This step will allow many potential new US investors (both institutional and retail) who were previously unable to invest in our company to purchase Rushydro's stock.   Therefore, we are looking for an uptick in liquidity and a further expansion and diversification of our shareholder base as a result of this change."

 

The Company’s GDR program was initially launched in July 2008. Based on a decision by the Russian FSFM, the maximum number of shares of the Company that can be traded abroad as part of the GDR program is 37.5 billion (14.7% of RusHydro’s charter capital). At present, RusHydro’s total GDR program represents in aggregate 7.62% of the Company’s charter capital as of August 6th, 2009.

 

Certain statements in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of JSC RusHydro. These forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from those expressed or implied by these forward-looking statements.

These risks include the risk of changes to JSC RusHydro's operations and business prospects, possible changes in the political and economic climate in Russia, changes in current or future circumstances relating to regulation of the Russian energy industry and Russian legislation, and the impact of competition and other risk factors. Many of these factors are beyond JSC RusHydro’s ability to control or predict. Given these and other uncertainties, JSC RusHydro cautions not to place undue reliance on any of the forward-looking statements contained herein or otherwise.

JSC RusHydro does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.


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