To integrate the renewables business, RWE renews and increases syndicated credit line
- New credit line amounts to €5 billion
- Partner is a consortium of 27 international banks
In preparation of the acquisition of the renewables activities of E.ON and innogy, RWE signed a new €5 billion credit agreement on 17 April 2019. The syndicated credit line replaces the existing €3 billion agreement and secures the Group’s liquidity.
The new line consists of two tranches, with terms of two and five years. They can be prolonged for one and two years, respectively. The credit line is being provided by 27 international banks and was substantially oversubscribed.
Dr. Markus Krebber, CFO of RWE AG, emphasises, “The early refinancing of the existing credit line gives us long-term financial flexibility and will enable the smooth integration of the renewables operations of innogy and E.ON. The great feedback from our partner banks is proof of the trust in our business strategy of turning RWE into a leading renewable energy provider.”
RWE AG, with its headquarters in Essen, Germany, has three operating divisions: Lignite & Nuclear, European Power based on gas, coal, hydro and biomass, and Supply & Trading. The company plays a major role in power system operations and security of supply across Europe. Its fourth pillar of business is a majority stake in innogy SE, one of the continent’s leading energy companies. In March 2018, RWE announced that it will transfer this equity holding to E.ON as part of an asset swap. In exchange, RWE will receive the renewable energy activities of innogy and E.ON as well as further assets. The transaction is expected to be executed by the end of 2019. Thus will turn RWE into a leading supplier of renewable energy in Europe, with a total of over 20,000 employees.