The Vnesheconombank resolved to extend a loan of 28.1 billion rubles for 16 years to complete the Boguchanskaya HPP project

Under the funding terms for the BEMO (Boguchanskoye Energy and Metals Complex) Project, approved by a resolution of the Vnesheconombank Supervisory Board on July  28, 2010, and in order to guarantee meeting the credit liabilities of JSC Boguchanskaya HPP and JSC BoAZ, the Company must pledge the shares it holds of JSC Building Owner of Boguchanskaya HPP Organizer of Construction of Boguchanskaya HPP, JSC Organizer of Construction of Boguchansky Aluminum Smelter and Building Owner of Boguchansky Aluminum Plant, and the promissory notes of JSC Boguchanskaya HPP and JSC BoAZ, and must become surety under the credit agreement between JSC Boguchanskaya HPP and Vnesheconombank. RusHydro's surety commitment will come into play in certain events, determined by the resolution of the EGM including failure to meet the HPP commissioning dates.
The Vnesheconombank Supervisory Board resolved to extend a loan of 28.1 billion rubles for 16 years to complete the Boguchanskaya HPP project. The loan will be repaid from cash flows of the projects within the BEMO Project, generated by proceeds of sales of electric power and aluminum, less sale costs.
According to Art.83 of the Federal Law on Joint Stock Companies, the contract of pledge of shares and promissory notes and the contract of suretyship entered into between the Company and Vnesheconombank will be transactions, to which A.B.Ballo, concurrently a member of the Board of Directors and a member of the Vnesheconombank Board, is an interested party. 
The General Meeting voted for increasing the Company's authorized capital by placement of 1,860,000,000 additional ordinary registered shares at a par value of one ruble each. The placement method is public offering, with shares to be paid up when placed in full.
The issue is aimed at attracting budgetary funds to finance the recovery of Baksanskaya HPP as well as to finance Company's investment program.