As part of the overall reform of Russia’s power sector, in 2007 RusHydro entered into a three-stage reorganisation process, involving: (I) a reserved capital increase of around $1.1bn in favour of the Russian Federation and other state-controlled entities; (II) the merger with RusHydro’s 22 subsidiaries and affiliated companies through share exchange offers, and (III) the merger with other hydro-generation entities set up during the power sector reform. BNP PARIBAS acted as the financial adviser of RusHydro on its reorganisation, in consortium with CIT Finance and IFC Metropol, two local investment banks.