Bryan Cave Leighton Paisner advising RusHydro on selling 90% shareholding in JSC International Energy Corporation (MEK) to Tashir Group

Bryan Cave Leighton Paisner, formerly Goltsblat BLP in Russia, has advised PJSC RusHydro on sale of its 90% shareholding in JSC International Energy Corporation (MEK), owner of the Sevan–Hrazdan HPP Cascade in Armenia. The deal was structured under an SPA between JSC Hydroinvest, a RusHydro subsidiary (the seller), and OJSC Hrazdan Power Company (Tashir Group) (the buyer). As part of the transaction, the buyer refinanced in full MEK’s debt obligations to the European Bank of Reconstruction and Development and the Asian Development Bank, secured by a RusHydro guarantee. Successful completion of the deal and termination of its guarantee allowed RusHydro to reduce its total financial debt by RUB 4 bn and to completely remove all foreign currency risks from its loan portfolio.

BCLP’s cross-practice team led by Corporate/M&A Partner Matvey Kaploukhiy and Banking and Finance Partner Oleg Khokhlov included Counsels Oksana Orlovskaya (Corporate/M&A) and Igor Zhivotov (Banking and Finance).

MEK is one of the biggest power generation companies in Armenia. It operates seven hydropower plants with a combined installed capacity of 561.4 MW or 14% of the country’s total installed capacity. The cascade of hydropower plants produces 8-10% of Armenia’s electricity per year. The plants of the cascade depend on Hrazdan river water inflows and water irrigation discharge from Lake Sevan.