9 July 2009 – RusHydro started to trade its Global Depositary receipts (GDRs) on part of the London Stock Exchange and thereby moved to access international investors and boost liquidity.
The Russian hydro power group said approval has been given for 14.7% of its authorised equity capital, or 37.5B shares, to be traded internationally as depositary receipts.
Under the GDR programme established a year ago, one GDR gives the rights to 100 ordinary shares, equating the 14.7% maximum allowed to 375M receipts. The number of GDRs issued has almost trebled to 6.17% of the authorised equity capital over the past year.
Just less than 62% of RusHydro is owned by the state, and the company said it aims to expand and diversify its investor base. As of 3 July, the market capitalisation of the group is Rouble 315B (US$10.1B).
At the end of last year the total installed hydro power capacity of RusHydro was 25,336.6MW. It has 50 hydro plants, including the largest – the 6.4GW Neporozhniy Sayano-Shushenskaya facility, and two pumped storage plants. In 2008 the company generated 80,273GWh of electricity.
Investments in new and modernisation projects are expected to add 1928MW of additional capacity by 2012. After a further three years, RusHydro expects that the completion of the projects will add yet another 3.64MW.
Projects underway include the nearly completed 2010MW Bureyskaya and a number of others in various stages of advancement: 3000MW Boguchanskaya; 840MW Zagorskaya PS; 570MW Ust-Srednekanskaya; 400MW Irganayskaya; 357MW Zaramagskiye; 100MW Gotsatlinskaya; and, 65MW Kashkhatau.
Last month the Russian aluminium group Rusal confirmed funding would continue for the joint venture development of Boguchanskaya with RusHydro, even though an associated smelter project has been delayed. The plant will have nine 333MW units, and RusHydro said 1667MW (five units) of capacity is expected to be operational at the plant by 2011, and the facility is to be fully in service before 2013. At full operation the plant is expected to generate 17,600GWh of electricity per year.
A spillway is also being constructed at the Neporozhniy Sayano-Shushenskaya complex.
Plans for projects to commence after 2012 include three plants with combined installed capacity of 1490MW, and a 12MW tidal power scheme in Dolgaya Bay. The three plants being considered are the 1200MW South-Yakutia complex and two plants in the 290MW Nizhneyeniseisky scheme (150MW Nizhny-Kureyskaya and 140MW Zelenchukskaya).
Rushydro said that trading GDRs on the regulated sector of the International Open Book of the LSE would simplify and open up investment opportunities for international investors, ‘increase considerably’ the liquidity of the receipts and raise its profile as a Blue Chip corporation.
Separately, RusHydro plans to establish first tier American Depositary Receipts (ADRs). It believes they could be launched in the middle of next month and be traded in the Main Market of the LSE. Plans for the ADRs have been submitted to the US Securities and Exchange Commission (SEC), on behalf of RusHydro, by The Bank of New York Mellon.