RusHydro Secures RUR 8 bln Financing from EBRD for RAO ES of East
JSC RusHydro (ticker symbol: RTS, MICEX, LSE: HYDR; OTCQX: RSHYY) announces that it has secured 10-year loan facility in the amount of RUR 8 billion (the equivalent of EUR 192 million) from European Bank for Reconstruction and Development (EBRD).
The EBRD funding will enable RusHydro to push ahead with a planned restructuring of recently acquitted RAO Energy Systems of the Far East.
In 2010, the EBRD supported RusHydro's debut Eurobond placement, taking up 22.5% of a 5-year rouble bond launched by the company, the first such instrument issued by a Russian power sector company. Konstantin Bessmertny, a member of RusHydro's Management Board, commented: "We are very pleased to receive support from our long-term partner, the EBRD, and look forward to developing our relationship further."
"We are glad to support RysHydro, a long-standing client of the Bank in these challenging times for debt markets. This 10-year facility clearly demonstrates the Bank's continuous commitment to the Russian power sector and we hope that our contribution will help develop the Far Eastern energy system", said Nandita Parshad, Director, Power & Energy Utilities of the EBRD.
The strategy of RusHydro on development of the Far Eastern power sector will include substitution of economically inefficient thermal power plants with efficient low-cost generation, conclusion of bilateral power-purchasing agreements with consumers both for existing capacities and generation assets under construction, realization of opportunities of electricity export to neighboring countries and carrying out of investment projects using mechanisms of private-public partnerships and project financing.
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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