(Alliance News) - Enel Spa is in talks with banks on a new multi-billion state-backed credit line to cover derivative risks linked to rising energy prices, Bloomberg reported on Tuesday.
Bloomberg reported that the Rome-based energy distributor is discussing establishing a EUR16 billion plan to shield the company from risks in the derivative market. According to the plan, Sace, Italy's trade-credit insurer, would provide guarantees for around 70% of the total amount.
Citing people familiar with the matter, Bloomberg said that Italy's biggest lenders would supply the funding. UniCredit SPA and Intesa Sanpaolo SPA could contribute EUR5 billion while three other banks - Cassa Depositi e Prestiti SPA, Banco BPM SPA and BPER Banca SPA - would add EUR2 billion.
Bloomberg said Enel is working with creditors on the plan, which would likely involved a revolving credit facility for as long as 18 months.
https://www.bloomberg.com/news/articles/2022-10-18/enel-in-talks-on-16-billion-loan-for-energy-price-effect
Shares in Enel were up 1.7% to EUR4.29 each in Milan on Tuesday afternoon.
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