By Christian Moess Laursen
Enel SpA said late Friday that it has signed a 12 billion euros ($12.76 billion) revolving credit facility with a group of banks to fund the collateral requirements for its energy-market trading activities.
The Italian utility said the credit facility--guaranteed by the Italian export credit agency SACE SpA for up to 70% of its nominal amount--has a term of about 18 months.
"The revolving credit facility is part of a structured course of action to protect Italy's energy system, aimed at providing sector operators with an additional tool for managing the risks associated with the very large size reached by the contracts stipulated to cover industrial positions (so-called margining) due to the continuing volatility of the energy markets as a result of the crisis," it said.
The company said the deal is in line with the European Commission's temporary crisis framework for state aid to support the economy during the Russia-Ukraine war.
The credit facility doesn't have any effect on its net financial debt, Enel said. The company had around EUR24.7 billion in liquidity at the end of September, it said.
Write to Christian Moess Laursen at EMAIL
(END) Dow Jones Newswires