The 10-year loan for this state-controlled company, was agreed after maturities on local capital markets reduced dramatically due to the current financial turbulence.
The EBRD funding will enable RusHydro to push ahead with a planned restructuring of a recently acquired subsidiary, OJSC Energy Systems of the Far East (ESV).
RusHydro will utilize the loan to refinance ESV’s short-term debt as part of a major corporate restructuring.
The restructuring will include the unbundling of the company’s electricity networks from its generation capacity.
RusHydro’s overhaul of ESV aims to improve productivity by bringing operating performance up to the highest Russian and international standards, including in terms of energy efficiency and reducing power losses.
EBRD director of power and energy utilities, Nandita Parshad said EBRD is glad to support RusHydro, a long-standing client of the Bank in these challenging times.
"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" added Parshad.
