BNY Mellon has been selected as the depositary bank for JSC RusHydro (RusHydro) and Norse Energy Corp ASA (Norse), as well as appointed trustee, registrar, paying agent, transfer agent and exchange agent for Ecopetrol SA.
BNY Mellon will be the depositary for both Norses and RusHydros American depositary receipt (ADR) programs. For the Russian firm this establishment reflects the decision to upgrade and combine its Regulation S global depositary receipt (GDR) program with a U.S. OTC traded ADR program. As a result, the Regulation S GDR program will be terminated and merged into the OTC-traded ADR program. The ADRs will be listed and quoted on the EEA Regulated Market of the London Stock Exchange under the symbol “HYDR” and traded on the OTC market.
“We believe that converting our existing Regulation S GDR program into an OTC-traded ADR program is the next logical step in our effort to build liquidity. This upgrade will enable U.S. investors, both institutional and retail, who were previously unable to invest in our company, to purchase RusHydro’s stock in Russia, London and New York,” said Vasily A. Zubakin, acting Chairman of the Management Board of RusHydro. “We anticipate further expansion and diversification of our shareholder base as a result of this transaction and as a result of the value-added services provided by BNY Mellon.”
Anders Kapstad, Chief Financial Officer of Norse said; “We are pleased with this agreement with BNY Mellon as it has a strong and proven track record. We wish to optimize U.S. investor access to our company, and we believe BNY Mellon has the resources and expertise necessary to help us achieve that goal.”
Michael Cole-Fontayn, Chief Executive Officer of BNY Mellon’s Depositary Receipt business said: “BNY Mellon played an instrumental role in the creation of RusHydro during the broad restructuring of Russia’s energy sector by helping to reorganize UES into 25 new subsidiaries. We’re honored to have been selected by RusHydro for our unparalleled expertise in the DR market. We also look forward to helping Norse unlock the potential of the U.S. capital markets. As the world’s leading depositary, BNY Mellon will utilize its resources to develop a long and mutually beneficial partnership with Norse, RusHydro and their investors.
Also this week the Columbian oil company, Ecopetrol, has chosen BNY Mellon Corporate Trust to provide a variety of services for the debt issue, including processing principal and interest payments and maintaining bondholder records.
“As the world’s leading corporate trust provider, we are well positioned to support Ecopetrol in this issuance, the success of which is a sign of investor confidence in the Colombian economy,” said James Maitland, Managing Director and head of BNY Mellon Corporate Trust’s international business. “We are committed to servicing the growing needs of issuers across Latin America, and this mandate by one of the largest companies in the region illustrates the market’s trust in our global capabilities and expertise.”