EBRD extends loans to Russian state power generator

• 11 years ago (2012-08-06)
• David Flin

Europe 1061

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The European Bank for Reconstruction and Development (EBRD) has committed to lending Russia’s electricity generator Inter RAO UES $300 million through a five-year convertible loan to prepare this state-controlled holding for a potential international public offering.

The EBRD and Inter RAO have agreed to work together on reviewing and improving the company’s corporate governance architecture to facilitate a full listing on an international exchange. Inter RAO shares are at present only listed on Moscow’s MICEX-RTS exchange. Riccardo Puliti, Managing Director for Energy and Natural Resources for EBRD, said: “This is another major step in EBRD’s strategy to support the privatisation of state-owned companies in Russia, particularly in electricity generation, and builds on the Bank’s previous projects in support of the reform of the Russian power sector.”

A list of specific corporate governance, operational and strategic commitments has been agreed between the EBRD and Inter RAO as part of the project. The objective is to increase the company’s transparency and accountability to shareholders. Inter RAO will implement these changes as part of a Corporate Development Action Plan agreed with the EBRD. In addition, Inter RAO is committing to an Environmental and Social Action Plan focusing on measures to improve environmental and social performance standards, policies, procedures and practices.