A subsidiary of Fortum, German energy company Uniper, has sought credit from KfW Bank and Fortum to secure liquidity amid extremely volatile markets that have seen unprecedented gas price rises, Fortum said on Tuesday.
Fortum provided Uniper with intra-group financing through a credit facility agreement of up to €8 billion.
This credit facility comprises two tranches: a shareholder loan and a parent company guarantee.
'Uniper has drawn the company's existing €1.8 billion revolving credit facility in full,' Fortum said.
The German state-owned KfW-Bank and Uniper agreed on a short-term revolving credit facility of up to €2 billion, which the company said has not yet been used.
To manage any further market volatility and significant price increases, Uniper has taken precautionary measures to secure additional liquidity and financial flexibility primarily for the winter season, Fortum said.
'During the early winter season, the very volatile commodity markets with unprecedentedly high prices have resulted in significantly higher margining requirements for European market participants,' the company added.
Natural gas prices in Europe increased by over 900% since January reaching €187 per megawatt-hour at the Dutch TTF hub on Dec. 21.
By Zeynep Beyza Kilic