BKW Secures CHF 1 Billion Credit Facility, Preemptively Refinances Existing Loans

BKW Secures CHF 1 Billion Credit Facility, Preemptively Refinances Existing Loans

(IN BRIEF) BKW, a Swiss energy company, has announced the agreement of a new unsecured, committed revolving credit facility amounting to CHF 1 billion, effectively refinancing its previous syndicated loans of CHF 2 billion ahead of schedule. The decision follows a period of heightened liquidity requirements in the wholesale energy sector in late 2021, prompting BKW to secure significant credit facilities in 2022 as part of its risk management strategy. With energy markets stabilizing and prices decreasing, BKW has opted to optimize capital costs by refinancing existing credit facilities. The new facility, negotiated with approximately 20 Swiss and foreign banks under the leadership of UBS Switzerland AG, features a five-year term extendable twice by one year, with an additional option to increase by up to CHF 0.5 billion to address any short-term financing needs. CFO Martin Zwyssig emphasized the company’s commitment to prudent risk management, ensuring financial flexibility while navigating evolving market conditions.

(PRESS RELEASE) BERN, 17-May-2024 — /EuropaWire/ — After the sudden increase in liquidity requirements in the wholesale energy sector at the end of 2021, BKW secured committed revolving credit facilities totalling CHF 2 billion in 2022 as part of its prudent risk policy. The energy wholesale markets have stabilised again over the past year as energy prices have fallen. Although a cautious risk policy is still being pursued, the original level of financial flexibility is no longer needed. In order to optimise capital costs, the existing credit facilities have therefore been refinanced before maturity.

Martin Zwyssig, CFO of BKW, says: “BKW was able to refinance its revolving credit facilities in advance on excellent terms. Our company is thereby sticking to its prudent risk policy, which paid off during the disruption on the energy markets.”

The new revolving credit facility of CHF 1 billion was agreed with around 20 Swiss and foreign banks under the lead of UBS Switzerland AG. The facility has a five-year term until 2029, with the option to extend it twice by one year. There is also an option to increase it by up to CHF 0.5 billion to cover any short-term financing needs that may arise.

The BKW Group is a Bern-based international energy and infrastructure company, It employs approximately 12,000 people. Its company network and innovative technologies enable it to offer customers a full range of skills in the areas of infrastructure, buildings and energy. The Group plans, builds and operates infrastructure to produce and supply energy to businesses, households and the public sector, and offers digital business models for renewable energies. Today, the BKW Group portfolio includes everything from engineering consultancy and planning for energy, infrastructure and environmental projects to integrated services in the field of building technology, as well as the construction, servicing and maintenance of energy, telecommunications, transport and water utility networks. With its trailblazing solutions, the companies of the BKW Group bring
spaces to life.

The registered shares of BKW AG are listed on the SIX Swiss Exchange.

Media Contact:

Tel. +41 58 477 51 07
media@bkw.ch
www.bkw.ch

SOURCE: BKW Group