VTB, RusHydro extend forward contract for power company's shares until March 2026

MOSCOW. Nov 28 (Interfax) - PJSC VTB and PJSC RusHydro signed an agreement in October 2024 on transferring all rights and liabilities relating to a forward contract for the energy company's shares in favor of VTB Capital Trading LLC, RusHydro said.

The contract itself was extended until March 2026.

The forward contract was valued at 25.68 billion rubles at the end of September 2024. The revaluation of RusHydro shares increased its value by 14.68 billion rubles, but the energy company paid 6.7 billion rubles in interim payments.

In 2017, RusHydro and VTB signed a forward contract totaling 55 billion rubles for a period of five years, which was later extended until 2025. RusHydro required the funds to resolve the financial situation regarding the group's companies in the Far East.

VTB at the time received 13.5% of the energy company's capital at 1 ruble per share, and the bank's stake has decreased to 12.37% since then. RusHydro conducted an additional share issue after 2017.

The contract stipulates that RusHydro must compensate VTB for the difference upon expiration of the forward contract's timeframe if the price of the energy company's shares is lower than the price at which the bank purchased them. VTB remits compensation if the price of the shares is higher than the purchase price. RusHydro is also required to remit quarterly payments to VTB at par value of the forward contract multiplied by the Russian Central Bank's key rate + 0.5%.

"The situation should be resolved one way or another, sooner or later. There are several ways. There is the opportunity to extend the forward contract even further. The situation has not changed yet," RusHydro CEO Victor Khmarin told Interfax in October, commenting on the forward contract.

RusHydro has more than 60 hydropower plants in Russia, thermal power plants and power grid infrastructure in the country's Far East, as well as power supply companies and research and engineering institutes. The company's power plants, including the Boguchany HPP, have installed capacity of more than 38.5 GW.

RusHydro's principal shareholder as at the end of September 2023 was Russia's Federal Property Management Agency (Rosimuschestvo) with 62.2%, VTB k owned 12.37%, and En+ Group held around 9.61%.