Source: energate

Because less liquidity is now needed for forward transactions on the trading floor, the group has replaced a credit line with a smaller one. The previous credit facility had a volume of 4.3 billion euros. The banks had provided this facility last year due to the price turbulence on the energy exchanges. The new loan has a volume of 3 billion euros, the Swedish group announced.

Such liquid funds are generally needed to hedge forward transactions until they are triggered. Other large companies in Europe had resorted to billions of euros in state aid during the height of the energy price crisis in order to have enough liquidity for their long-term trading activities. These included, for example, Axpo in Switzerland and Fortum in Finland and Wien Energie in Austria had also taken a similar approach. The energy crisis has fuelled a regulatory debate aimed at reforming the collateralisation system in the EU electricity market design and allowing other collateral besides liquidity. Fortum CEO Markus Rauramo is among the advocates of reforming the EU's so-called Emir Regulation (European Market Infrastructure Regulation).

< back