RWE has secured a credit line of €5bn from a consortium of 27 international banks in readiness for the completion of the deal with Eon, which will see the former acquire the latter’s renewables business.
The money, which replaces an earlier credit line of €3bn, will be delivered in two tranches – one of €3bn with a five-year term and the other a two-year €2bn facility.
RWE said that, if the banks agree, the first tranche can be extended twice, by one year each time, while the second can be extended once for one year.
The company said the Eon deal is continuing to make progress and as soon as all the relevant competition and supervisory authorities have been obtained, the transaction will be completed in two steps.
First, Eon will receive RWE’s 76.8 % stake in Innogy and a payment of €1.5bn. At the same time, RWE will acquire a financial investment in Eon of 16.67% and take over the latter’s minority shares in the Gundremmingen (25%) and Emsland (12.5%) nuclear power plants.
This is expected to occur in the third quarter of this year.
Second, Eon will then transfer its renewable energy activities and those belonging to Innogy to RWE.
RWE will also receive the gas storage business and the minority interest in the Austrian energy utility Kelag (37.9%) from the Innogy portfolio.
RWE chief executive Markus Krebber (pictured) said: “We’re on schedule in implementing our transaction with Eon. The preparation of the integration of the renewables business is also making good progress: The ‘new RWE’ is in sight.”