KfW IPEX-Bank arranges credit line for Trading Hub Europe GmbH

KfW IPEX-Bank has arranged a syndicated credit line with a very substantial amount of financing for Trading Hub Europe GmbH ("THE"). The syndicated facility replaces a working capital line previously provided by KfW IPEX-Bank under a bilateral arrangement. The syndicate financing had become necessary due to a sharp increase in liquidity requirements for the procurement of the required amounts of balancing energy arising from the dynamic development in the German gas market since the 4th quarter of 2021.

The new syndicate banks of THE are Commerzbank, Deutsche BANK, LBBW, BayernLB, DZ BANK AG, NORD/LB and UniCredit Bank AG. Taking into account the importance of Trading Hub Europe GmbH’s activities, the new syndicate members and KfW IPEX-Bank are participating with significant shares in the working capital facility.

In doing so, the participating banks are making a significant contribution to ensuring the operation of the entire German market area today and in the future. To secure the liquidity situation for the winter half-year, which runs until 31 March, KfW IPEX-Bank had previously provided underwriting in the form of an increased bilateral working capital line.

In the Glasgow resolutions, the German Federal Government declared that it would largely discontinue international government financing for the fossil energy sector from the end of 2022. At the same time, however, in an additional protocol it stressed the importance of gas for the orderly transition to climate neutrality. KfW IPEX-Bank also shares this differentiated viewpoint. The increase in the credit line for THE relates exclusively to the short-term hedging and stability of the German gas supply and is therefore not in breach of the medium and long-term climate policy objectives agreed in the Paris Climate Agreement and strengthened under COP 26.

About Trading Hub Europe GmbH
Trading Hub Europe GmbH was established on 1 June 2021 by the network companies bayernets GmbH, Fluxys TENP GmbH, GASCADE Gastransport GmbH, Gastransport Nord GmbH, Gasunie Deutschland Transport Services GmbH, GRTgaz Deutschland GmbH, Nowega GmbH, ONTRAS Gastransport GmbH, Open Grid Europe GmbH, terranets bw GmbH and Thyssengas GmbH. Since 1 October 2021, Trading Hub Europe GmbH is the market area manager for the entire German market area of Trading Hub Europe and operates the market area as provided by the Agreement on cooperation pursuant to Section 20 1b) EnWG between operators of gas supply networks located in Germany (“Cooperation Agreement”). The high-pressure pipeline system in Trading Hub Europe’s nationwide market area will have a total length of some 40,000 km and connect more than 700 downstream networks.