Issue of Debt

April 21nd, 2011

RusHydro Will Place RUR 15 Billion of Bonds with a Coupon Rate of 8.0%

JSC RusHydro (ticker symbol: RTS, MICEX, LSE: HYDR; OTCQX: RSHYY) has closed the order book for two bond issues for a total of RUR 15 billion. The Company also determined the coupon rate for the first period.

On April 21st, 2011, at 17:00 (Moscow time), the period for accepting bids from investors ended and the order book for two bonds issues with a par value of RUR 10 billion each was closed. The coupon rate for the first period was priced at 8.0% per annum. The second through tenth coupons have the same rate. The bonds are subject to put option in 5 years. The placement volume will total RUR 15 billion with second issue will be placed only in half.

The issues will be included in quotation list "A1" of Moscow Interbank Stock Exchange (MICEX).

The bonds placement will begin April 25th, 2011. Gazprombank acts as the underwriter for this issue; lead managers are Gazprombank, Raiffeisen Bank and VTB Capital.

The placement will be conducted via open subscription by collecting bids from investors at a fixed price and coupon rate for the first coupon period. The placement arrangements were approved by the Board of Directors July 29th, 2010. The placement volume will total RUR 15 billion with one issue placed only in half.

The bond issues were registered by Russia's Federal Service for Financial Markets (FSFM) September 23rd, 2010 (State registration numbers 4-01-55038-E and 4-02-55038-Е).

RusHydro's 2011-2015 business plan, as adopted by a resolution of the Company's Board of Directors March 18th, 2011, provides for increasing long-term borrowings in 2011 up to RUR 15 billion. Proceeds will be used to finance the Company's investments as well as to partially refinance the bond issue of JSC Management Company HydroOGK, which matures in June 2011.

DISCLAIMER

The information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of RusHydro. One can identify forward-looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially from these statements.

We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia and rapid technological and market changes in our industries, as well as many other risks specifically related to RusHydro and its operations.