Power utility Russian Grids is holding talks over taking out long-term loans with low interest rates from major Chinese banks for investments in joint projects with the State Grid Corporation of China, business daily Kommersant reported Monday, citing a source familiar with the talks.
The holding held a number of meetings in Hong Kong with China’s largest banks, including Bank of China, Industrial and Commercial Bank of China, and Agricultural Bank of China. The company plans to borrow the funds in rubles and yuan.
In May, Russian Grids and the State Grid Corporation of China signed a strategic cooperation agreement, under which they will consider building a power bridge for power supplies from Russia to China and will also exchange experience in using technologies, developing smart grids, building and upgrading power facilities. The companies could create a joint venture to implement these projects.
Russian Grids started searching foreign investors in late 2013 after the government froze monopoly tariffs for 2014 and decided to limit them by inflation level over the next two years. The company calculated it would lose 391 billion rubles from regulatory changes in 2014-2018.