RusHydro will receive RUR 1.5 bn from the federal budget for Gotsatlinskaya hydropower plant
JSC RusHydro (ticker symbol: MICEX-RTS, LSE: HYDR; OTCQX: RSHYY) announces that during the ongoing share placement RusHydro will receive RUR 1,498 mn from federal funds to finance the construction of Gotsatlinskaya hydropower plant.
The transaction provides for the transfer of RUR 1,498 mn from the federal budget to the share capital of RusHydro in exchange for 907, 986,666 shares of the new issue. During the pre-emptive rights period of the share placement, RusHydro has already received RUR 3,133 mn of budget funds for Gotsatlinskaya.
The price of new shares was approved by the Board of Directors at RUR 1.65 per share. The decision to increase the Company's share capital through issue of 89 bn shares was adopted by the Annual General Meeting of shareholders on June 30, 2011.
The construction of 100 MW Gotsatlinskaya hydropower plant with an average annual generation of 350 GWh started in early 2007. RusHydro plans to launch the power plant by the end of 2013. After completion Gotsatlinskaya will be one of the largest hydropower plants in the Republic of Dagestan. Commissioning of this generating plant will help improve the supply/demand in the republic, which had a deficit of 1.1 TWh of electricity in 2011.