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RusHydro closes bid book on RUB 10 bn exchange-traded bonds with the lowest coupon rate since June 2014 among corporate lenders

June 8, 2017. Moscow, Russia. PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that on June 7 it has successfully closed the bid book on exchange-traded bonds series BO-05. The offering was welcomed by high demand from broad range of investors – the issue was oversubscribed 5 times. Due to favorable timing marketing interval had been narrowed from initial 8.5-8.65% to 8.2-8.25%. The final coupon rate on the 3-year exchange-traded bonds was set at 8.20% per annum – the lowest among corporate bonds since June 2014. The rate is below level of all traded issuers with investment grade ratings. The spread to OFZ yield curve is 37 basis points – a historic minimum among all placements on the Russian bond market.

Nikolai Shulginov, Chairman of the Management Board - General Director commented: «Parameters of the new bond issue indicate, first of all, steady strengthening of the Russian financial markets and also reflect results of team work of the Company together with the key banks in the debt market. We will keep doing everything we need to do to confirm high level of confidence in RusHydro as a reliable and efficient state-owned utility company”.

The technical placement will take place on June 16, 2017.

VTB Capital, Gazprombank and Sberbank CIB act as issue organizers, Bank Rossiya as co-organier.

The bonds have 6 coupon periods. The duration of each coupon period is 182 days. Total amount of interest to be paid by the issuer on all bonds will be RUB 408,900,000.

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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