BNY Mellon, the global leader in investment management and investment services, has been appointed as the successor depositary bank for the Global Depositary Receipt (GDR) program of JSC Federal Grid Company of Unified Energy System. Each Federal Grid Company GDR represents 500 ordinary shares and trades on the London Stock Exchange under the symbol "FEES." Federal Grid Company's ordinary shares trade on the Moscow Exchange under the symbol "FEES."
Federal Grid Company is the operator and manager of Russia's unified electricity transmission grid system, which consists of more than 131,000 kilometers of transmission lines. Federal Grid provides electricity transmission and technological connection services and maintains and develops grid facilities and infrastructure, providing electricity in 75 regions of Russia, an area of 14.8 million square kilometers. Its customers are regional distribution companies, electricity suppliers, and large industrial enterprises.
"Developing our relations with international investors is a key priority for our company," said Andrey Kazachenkov, Federal Grid's First Deputy Chairman of the management board. "Given the role that the depositary program can play in expanding the potential investor base, we are hopeful that working with the market leader will serve to significantly increase the liquidity of our GDRs on the London Stock Exchange, as well as enhance the investment attractiveness of Federal Grid Company for international capital markets."
"Federal Grid's decision to switch to BNY Mellon as depositary is testament to our unmatched service and track record," said Christopher M. Kearns, CEO of BNY Mellon's Depositary Receipts business. "We will work closely with the company to broaden its outreach to the global investment community as it strives to diversify its shareholder base and attract more global investors."
The Federal Grid Company GDRs have not been registered under the U.S. Securities Act of 1933 and may not be offered or sold in the U.S., absent registration or an applicable exemption from the registration requirements.
BNY Mellon acts as depositary for more than 2,700 American and global depositary receipt programs, acting in partnership with leading companies from 68 countries. BNY Mellon is committed to helping securities issuers access the world's rapidly evolving financial markets and delivers a comprehensive suite of depositary receipt services.