German energy company RWE has secured a EUR 5 billion credit agreement in preparation for the integration of the renewables activities of E.ON and innogy.
The line of credit, provided by 27 international banks, was significantly oversubscribed, RWE said.
Under the agreement reached in March 2018, E.ON is to take over RWE’s 76.79% stake in innogy, whereas RWE is to obtain among other things all of E.ON’s major renewable energy activities and innogy’s renewable energy business, as well as a 16.67% minority stake in E.ON.
Following the completion of the transaction, expected in the second half of 2019, RWE will operate approximately 8GW of renewable energy assets, including offshore and onshore wind as well as hydro and photovoltaics.
Once the deal closes, RWE will be the world’s second-largest offshore wind operator, while occupying a top five position among all renewable energy producers, the company said.
''We’re on schedule in implementing our transaction with E.ON. The preparation of the integration of the renewables business is also making good progress: The ‘new RWE’ is in sight,'' Dr. Markus Krebber, CFO of RWE, said.