Utility Uniper uses state-owned KfW bank for hedging against extreme market developments
Reuters / dpa
German energy company Uniper has secured credit facilities worth up to 10 billion euros, including up to with German state-owned KfW bank, in a move to cope with unprecedented volatility in energy markets, . The option with KfW has not been used yet, dpa reports in an article Frankfurter Allgemeine Zeitung. Uniper, a subsidiary of Finnish Fortum Group, is hedging against extreme market developments as prices for natural gas and power are skyrocketing. Uniper stressed that it was a 鈥渧ery healthy company鈥�, but needed to be prepared in this highly volatile market environment. Uniper shares fell by 1.69 percent to 41.29 euros on Wednesday morning.
Uniper competitor RWE said they had made arrangements to cope with the situation via credit lines and other funding instruments, .
Prices for natural gas in Europe have risen to new extremes due to the economic recovery from the pandemic, issues with supply from Russia and low storage levels 鈥� problems that could be exacerbated by cold weather in the coming winter months.
