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RusHydro signs cooperation agreement with VTB

PJSC RusHydro (or “the Company”, ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that it has signed a cooperation agreement with VTB Bank PJSC ("VTB" or "the Bank").

The Agreement has been signed at the Eastern Economic Forum by Evgeny Dod, Chairman of the Management Board – General Director, PJSC RusHydro, and Andrey Kostin, President and Chairman of VTB Bank.

The scope of agreement includes, inter alia, cooperation between the Company and the Bank in refinancing of the debt portfolio of RusHydro’s subsidiary, RAO Energy Systems of the East, increasing the investment appeal of RusHydro shares and seeking strategic investors in the Company’s share capital.

In particular, VTB considers providing financing to RusHydro in the amount of RUB 85 bn through purchase of newly issued shares of the Company and a conclusion of a 5-year forward contract on these shares. In the result, the Bank will own a stake of up to 20% of RusHydro shares. The Bank is also prepared to provide assistance to RusHydro in raising its investment appeal, including via improving financial conditions of the Company, and is ready to jointly seek strategic investors for the shares.

In turn, RusHydro is intended to implement, jointly with the Bank, measures aimed at increased investment appeal as well as ensure costs optimization, in order to increase net profit as basis for higher dividend income of shareholders.

With the purpose of implementing the Agreement, the parties plan to sign individual agreements covering each project.

Evgeny Dod commented: “We are ready to make an important step in implementing unique program of cooperation between the Company and the Bank aimed at radical improvement of RAO Energy Systems of the East financial situation that will in turn have very positive effect on reliability of energy supply in the region. At the same time, the deal we plan to conclude creates additional stimuli for implementing measures, aimed at growth of shareholder value and investment appeal of the Company”.
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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