March 11, 2020. Moscow, Russia. PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) has finalized divestment of its assets in Armenia to PJSC Hrazdan Power Company (HrazTES, Tashir Group).

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According to the agreement from December 2019 to divest 90% shares of JSC MEK, a company operating Sevan-Hrazdan cascade of hydropower plants in Armenia, the purchaser has fulfilled JSC MEK’s obligations before European Bank for Reconstruction and Development and Asian Development Bank by securing a loan from HSBC Plc upon which the shares were transferred.

RusHydro’s financial debt decreased by RUB 4 bn following completion of the transaction and the company no longer has any foreign currency risks in its loan portfolio.

RusHydro no longer owns any generating assets outside of the Russian Federation.

As mentioned earlier, the selling price of 527,085 ordinary shares is RUB 172.96 mn. RusHydro’s Board of Directors approved divestment of the Group’s shareholding in JSC MEK. The Public Services Regulatory Commission of the Republic of Armenia has authorized the transaction as well.

JSC MEK is one of the largest power generation companies in Armenia. It operates seven hydropower plants with combined installed capacity of 561.4 MW or 14% of the country’s total installed capacity. The cascade of hydropower plants produce 8-10% of Armenia’s electricity per year. The power generation by the plants of the cascade is dependent on water inflows of the Hrazdan river and water irrigation discharge from Sevan Lake.