November 21, 2019. Moscow, Russia.
PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY)
announces signing a supplementary agreement with VTB Bank to improve
the terms of the forward agreement signed in March 2017.
Rizhinashvili, member of the Management Board, Deputy General
Director of RusHydro, and Yuri Soloviev, First Deputy President and
Chairman of VTB Bank Management Board, signed an agreement at the
11th Annual VTB Capital Investment Forum ‘Russia Calling’ that
updates the terms of the forward agreement initially signed in March
Earlier in October 2019, the Board of Directors approved
the supplemental agreement to the forward contract. RusHydro and VTB
Bank signed the agreement of intent in September 2019 at the Fifth
Eastern Economic Forum.
The forward contract is a unique
mechanism that allowed RusHydro to raise funds at a significantly
lower rate as compared to conventional bank loans.
supplemental agreement provides for lowering the forward rate by 50
bps (initially set at CBR key rate + 150 bps) and extension of the
agreement for three years through 2025 allowing more time to seek a
strategic investor and jointly work on increasing RusHydro’s share
RusHydro and VTB Bank have been initially signed the
forward contract in order to refinance RAO ES East subgroup’s debt.
The deal has helped raise funds for the strategically important power
sector of the Far East and helped reduce RusHydro Group’s
consolidated debt. The transaction has not only improved the
financial position of the Group’s far-eastern subsidiaries but also
paved the road for amendment of the company’s dividend policy.