European energy and utility companies are piling on more debt to cover soaring costs due to rising oil and gas prices, Bloomberg reports.
Their total-cumulative debt, which has been expanding since the beginning of the coronavirus pandemic in 2020, has reached 1.7 trillion. euros – in an increase of more than 50% compared to the pre-pandemic era.
Recently, Germany’s Uniper announced that it needs 9 billion euros in new borrowing, while the Czech energy company CEZ is going to the markets for 3 billion euros in order to deal with the energy crisis. At least 24 billion euros of new borrowing will be used to finance the entire sector in the immediate future.
Europe’s energy companies have raised 45 billion euros in bonds and taken out 72 billion euros in loans in the first six months of 2022, according to Bloomberg data.
Source: Capital
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