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 2 billion euros with German state-owned KfW bank, in a move to cope with unprecedented volatility in energy markets, reports news agency Reuters. The option with KfW has not been used yet, dpa reports in an article carried by 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 “very healthy company”, 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.
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 – problems that could be exacerbated by cold weather in the coming winter months.