The Swiss government has granted a credit line of up to CHF 4 billion (USD 4.07bn/EUR 4.1bn) to Axpo Holding AG to ensure that the renewable power producer is able to cover the collateral requirements of long-term power supply contracts even if the European energy crisis deepens.
Axpo explained in a statement that in the past weeks electricity wholesale prices in Europe have surged tenfold compared to the levels in September 2021, which, in turn, has resulted in a massive rise in liquidity requirements across the energy sector on the continent.
For this reason, the Swiss company applied for the credit facility on September 2 and saw its request approved on September 5, 2022. On that date, Axpo had more than CHF 2 billion of liquidity at its disposal.
"Paradoxically, while in the short-term we are confronted with the challenges of an historic energy crisis, Axpo's long-term outlook remains positive,” stated Axpo CEO Christoph Brand. “By taking this action, we want to ensure that the company can continue to make its vital contribution to Switzerland’s security of energy supply, even if the highly uncertain market situation intensifies further as we approach the winter half-year,” he added.
The credit line is subordinated to existing financings and does not require any security, Axpo said, adding that there is no drawdown on the facility to date.
(CHF 1 = USD 1.018/EUR 1.026)
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