7 Oct 2009 16:37

RusHydro not planning to sell treasury stock for now

MOSCOW. Oct 7 (Interfax) - RusHydro is not planning to sell treasury stock for now, acting chief Vasily Zubakin said at a briefing on Wednesday.

"It is advantageous for us to keep the treasury stock on our balance sheet and not sell it," he said.

It would be better to increase the debt burden with loans, he said.

RusHydro's treasury bonds are the portion of the genco's additional share issue, which had not been purchased by the state. The state did not realize its entire preferred right for the purchase owing to a reduction in the budget. The shares are now on the balance sheet of the RusHydro's 100% subsidiary, OJSC Hydroinvest.

It was earlier reported that the Federal Financial Markets Service (FFMS) registered RusHydro's additional share issue on September 24. The genco placed 14,681,412,135 shares at a face value of one ruble (91.75% of the total). Around 45% of the additional share issue was acquired through preferred rights.

RusHydro unites over 25 gigawatts of hydro-generation capacity. The state owns 61.93% of the shares in the company.