April 17 (Renewables Now) - German energy group RWE AG (ETR:RWE) said today it has signed a new EUR-5-billion (USD 5.65bn) credit agreement to get ready for the acquisition of the renewable energy activities of both E.on SE (ETR:EOAN) and Innogy SE (ETR:IGY).
The new credit line was agreed with a consortium of 27 international banks and consists of two tranches, with terms of two and five years that can be prolonged for one and two years, respectively. It replaces an existing agreement for EUR 3 billion.
“The early refinancing of the existing credit line gives us long-term financial flexibility and will enable the smooth integration of the renewables operations of innogy and E.on,” commented CFO Markus Krebber.
RWE and E.on last year announced an agreement for a complex transaction that includes certain asset swaps such as E.on’s acquisition of Innogy from RWE and the latter’s purchase of both parties’ renewable energy businesses.
(EUR 1.0 = USD 1.131)