RusHydro secures USD 25 mn loan from Asian development bank for modernization of Armenia’s Sevan-Hrazdan hydropower plants
JSC RusHydro (ticker symbol: MICEX-RTS, LSE: HYDR; OTCQX: RSHYY) announces that it has provided the guarantee under a $25 million loan signed today by Asian Development Bank (ADB) and International Energy Corp. (IEC), subsidiary of RusHydro, earmarked for rehabilitation of the Sevan-Hrazdan cascade of hydropower plants in Armenia, built between 1930s and 1960s.
The cascade now requires refurbishment to extend its working life and reduce the risk of major failures. Aside from the rehabilitation of the hydropower plants, IEC also plans to modernize the plants’ diversion channels.
“The rehabilitation of the Sevan-Hrazdan cascade of hydropower plants will improve Armenia’s energy security by supplying clean and affordable electricity generated with local water resource. It will help transform IEC with modern equipment and best practice of hydropower plants operation,” said Michael Barrow, Director in ADB's Private Sector Operations Department.
“We expect that this first long-term funding from Asian Development Bank for rehabilitation of RusHydro’s hydropower assets in Armenia would kick-off a good start of effective relations between RusHydro Group and the bank,” concluded Konstantin Bessmertniy, Member of the Board, RusHydro.
The Sevan-Hrazdan cascade hydropower system is one of the most important hydropower generation assets in Armenia. The system consists of seven diversion hydropower stations, canals, and reservoirs located on river Hrazdan between Lake Sevan and the city of Yerevan. It currently supplies about 10% of the country’s electricity, and plays a significant role in supporting the balance of the electric grid and providing affordable energy.
About RusHydro:
RusHydro Group is one of Russia’s largest generating companies. RusHydro is the leading producer of renewable energy in Russia with over 70 generating facilities in Russia and abroad. The company also manages a number of R&D, engineering and electricity retail companies. Group’s thermal assets are operated by subsidiary – RAO Energy System of East in the Far East of Russia. Total electricity generation capacity of the Group is 36.5 GW, heat capacity – 16.2 thousand GCal/h.
Russian Federation owns 65.9% in RusHydro, the rest is held by other institutional and individual shareholders (over 360,000). The company’s stock is traded on the MICEX and RTS stock exchanges, and included in MSCI EM и MSCI Russia indexes. Company’s GDRs in the IOB section of LSE, ADRs – in OTCQX.
About Asian development bank
Asian development bank (ADB), based in Manila, and is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth and regional integration. Established in 1966, it is owned by 67 members – 48 from the region.
For more information:
JSC RusHydro, Investor Relations Department
Tel. +7 (495) 225-3232 ext. 1319, 1607
DISCLAIMER
The information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of RusHydro. One 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 and rapid technological and market changes in our industries, as well as many other risks specifically related to RusHydro and its operations.
