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The Markets
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The Markets
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Energy

UK power plant operator Uniper borrows €2bn amid bailout negotiations

Germany and the energy giant have been in talks about a bailout in recent weeks

Düsseldorf-based energy giant Uniper SE said it has drafted an agreement with KfW banking group for a credit facility worth €2bn (£1.7bn).

The firm said it drew on a previously approved public credit facility amid the ongoing gas crunch and is in contact with banks and the German government to ensure financial stabilisation.

The energy giant imports most of its gas from Russian producers and has experienced liquidity problems following Gazprom's decision to curtail supplies to Germany.

In early July, Uniper chief executive Klaus-Dieter Maubach said the company would not be able to "endure for long" in the current climate.

Fortum, Uniper's majority-owned Finnish parent, has been involved in bailout talks with the German government, which said last week it would have to consider all options in order to ensure the security of European energy markets.

As part of its attempt to survive, Uniper, which owns and operates eight power plants across the UK, including coal power plant Ratcliffe-On-Soar in Nottinghamshire, is reportedly appealing to the German government for billions to stay in business.

That might include in an equity stake and more debt funding via a state-backed credit facility.

Maubach said in a press conference a few days ago that the federal government recognised the seriousness of the situation and had amended its Energy Security Act.

Through the Act, energy companies can apply for support and the government can take a share of their equity.

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