DJ federal government supports energy companies with billions – newspaper
FRANKFURT (Dow Jones) — According to a newspaper report, there is a risk of insolvency in the energy industry because more and more companies would have to increase their security deposits for futures transactions by billions of euros in view of higher commodity prices. After the energy company Uniper, a second energy company turned to the federal government this week because of financial bottlenecks and submitted an application for aid measures, writes Die Welt am Sonntag. From the Federal Ministry of Finance it can be heard that it is a short-term loan of 5.5 billion euros. This is one of the largest loans that the state development bank KfW has ever granted to a company.
Those involved did not give the newspaper the name of the company. “But it is probably a large power plant operator that does not receive any energy supplies from Russia, but has very reliable sources of supply,” writes Die Welt am Sonntag.
A spokesman for the Federal Ministry of Finance told Dow Jones Newswires that, as usual, the ministry did not comment on individual reports.
On January 4, Uniper agreed a credit facility of up to EUR 2 billion with the state-owned KfW Bank, the term of which ends on April 30. With the measures, Uniper wants to increase its resilience to future, extreme market developments and the resulting security services. The energy group had previously drawn down its existing revolving credit facility with its core banks in the amount of EUR 1.8 billion in full. In addition, a credit line agreement for EUR 8 billion was agreed with the Finnish main shareholder Fortum.
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(END) Dow Jones Newswires
March 13, 2022 11:23 ET (15:23 GMT)
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