Results of the Board of Directors on February 27, 2015
JSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a meeting in absentia on February 27, 2015.
The Board of Directors approved bilateral agreements between RusHydro and Inter RAO for sale and purchase of electricity on the territories of the Russian Federation located in non-price zones of the wholesale market in regard to the Bureyskaya and Zeyskaya HPPs, qualified as an interested party transaction.
These agreements provide for supply of electricity generated by hydropower plants in excess of balance. Total amount of electricity supplies under these agreements will not exceed 2,400,000 MW.
The Board of Directors approved the addendum to the agreement between RusHydro and Moscow Power Engineering Institute signed in 2013 for R&D and technological works aimed at reliability improvement of hydro turbines.
The Board of Directors approved the agreement between RusHydro and SO UES, qualified as an interested party transaction.
According to the agreement RusHydro will control the reactive capacity without electricity production using generating facilities of the Volzhskaya, Ezminskaya, Gizeldonskaya, Zelenchugskaya HPPs and Zagorskaya pumped storage plant.
The Board of Directors approved an agreement for sale and purchase of shares between RusHydro and Sulak HydroCascade, qualified as an interested party transaction.
According to the agreement Sulak HydroCascade will transfer to RusHydro up to 1,393,100,000 ordinary shares to be placed through a private subscription in accordance with the decision on additional issue of shares registered by the Bank of Russia on February 5, 2015. The price of placement amounts to RUB 1 per share, RusHydro pays for these shares in cash.
SC Sulak HydroCascade (wholly owned by RusHydro) constructs the Gotsatlinskaya HPP with the installed capacity of 100 MW.
The Board of Directors approved the additional contribution of funds to share capital of Small HPPs of Stavropolye and Karachaevo-Cherkessia LLC, qualified as an interested party transaction.
The amount of contributed funds will not exceed RUB 912,760,000 (free of VAT). Par value of RusHydro share in the company increases by the amount of contributed funds. The funds will be contributed within 12 months from the date of decision on increase of share capital of Small HPPs of Stavropolye and Karachaevo-Cherkessia LLC.
RusHydro acquires the shares in order to finance the investment projects on construction of new generating facilities.
The Board of Directors approved the first part of decision on RusHydro’s securities issue (Bond Program) and the Prospectus for non-convertible interest-bearing documentary bonds with mandatory centralized custody with total par value of RUB 200 bn maturing in 20 years or on the 7,280th day from the date of placement. The bonds are to be placed through an open subscription.
Approval of documents for securities issue doesn’t mean the start of placement. The Company will determine conditions (terms and amount) of bonds issues depending on the current market situation. Registration of Bond Program will allow RusHydro to accelerate the placement process.
The information on other decisions of the Board will be disclosed in compliance with regulatory requirements.
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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