Financing Strategy

RWE primarily meets the financing needs with the cash flows that we generate from our operating activities. In addition, we have access to a number of flexible financing instruments.

Financing: Flexible Structure and Widely Diversified Sources
^{(Last updated 30 September 2011)}

One of our major tools is the Debt Issuance Programme (DIP) for medium to long-term refinancing on the capital market. The maximum nominal volume of bonds that we can issue through the DIP totals €30 billion. As of 30 September 2011, a nominal €14.8 billion in bonds were outstanding.

In addition, we issued a hybrid bond with a nominal volume of €1.75 bn in September 2010. Hybrid bonds are a mix of equity and debt financing.

In addition to the DIP, we have a US$5 billion Commercial Paper Programme for shortterm financing on the money market. As of 30 September 2011, a foreign-currency equivalent of €2.5 billion in RWE commercial paper was outstanding.

A €4.0 billion credit line serves as an additional liquidity reserve. It has a tenor of an initial five years. RWE has the option in 2011 and 2012 to file for an extension of the credit line until November 2016 and 2017, respectively.

Neither the aforementioned financing instruments, nor the current credit facilities, contain specific financial covenants such as interest coverage, leverage or capitalisation ratios that could trigger actions, such as acceleration of repayment, provision of additional collateral, or higher interest payments. Likewise, they do not contain rating triggers.