Leading Russian Power Company in Floating-Rate Credit Facility

Cleary Gottlieb represented AO Mosenergo in an innovative “MOSPRIME” floating-rate credit facility provided by the European Bank for Reconstruction and Development (EBRD) to finance work on two large turbine generating units. Several western banks are anticipated to join the transaction. The 7.2 billion ruble deal, which was signed in Moscow on December 23, is only the second floating-rate ruble facility by the EBRD and will be the first of its kind to include western banks. The transaction comes just one week after the first-ever such deal by the EBRD, in which Cleary represented the Russian state borrower, The Federal Grid Company.

AO Mosenergo is Russia’s largest power generating company and provides electric power services to metropolitan Moscow.