Fluxys Finance – a subsidiary of Fluxys G – has signed an agreement with BNP Paribas Fortis and KBC for a 3-year, €400 million credit line to finance the group’s investment projects. Fluxys G will guarantee the commitments made by Fluxys Finance, the unit responsible for the centralised management of cash funds and financing.
Walter Peeraer, Managing Director at Fluxys G , said that “ We estimate the budget for our 10-year investment programme in Belgium at around €2 billion, and we’re also working to bolster our current position on the European transmission market. The credit line with BNP Paribas Fortis and KBC is a new step forward for the Fluxys G group in diversifying its financing. The agreement is confirmation of the confidence financial institutions and the market have in our group’s industrial clout, our financial reliability, and in our long-term strategy as a transmission infrastructure company to invest in enhancing security of supply and efficient operation on the North-Western European natural gas market .”
“ This short-term credit line gives our customer Fluxys G access to the liquidity it needs to move quickly and efficiently ” notes Yvan De Cock, Head of Corporate & Public Bank Belgium at BNP Paribas Fortis . “ As a long-time partner to the energy sector and the real economy in general, we are pleased to support customers such as the Fluxys G group in their efforts to devise and implement their financial strategy .”
According to Wim Leemen, Manager Corporate Banking at KBC Bank headquarters, “ with this financing, we aim to continue supporting Fluxys G in deploying its investment programme in Belgium and in its plans to further develop the prominent position Fluxys G has already built up in the North-Western European gas transmission market .”
Flexible approach
The agreement is what is known as a ‘club deal’, a short-term credit line with a limited number of house banks. For the Fluxys G group the credit line offers access to liquidity at previously agreed conditions as a bridge loan to long-term financing. BNP Paribas Fortis and KBC, in turn, are signing an agreement with a business partner with a fine financial track record.
Developing a strong natural gas market in Northwestern Europe
Driven by a long-term vision, the Fluxys G group has developed the Belgian grid into a crossroads for cross-border flows along the major north/south and east/west transmission axes in order to enhance security of supply and boost efficient market operation. The investment programme in Belgium aims to further enhance this crossroads role and to promote cross-border flows and transfers. It focuses on industrial cooperation in order to develop harmonised services for cross-border flows as well as on structural shareholdings in new infrastructure projects or existing infrastructure and/or companies.
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Source: Fluxys G, May 6, 2011;