Thanks to its robust financial position, RWE is only affected by the current crisis on financial markets to a limited extent. The capital market confirms our strong creditworthiness, as evidenced by our good credit ratings and the below-average prices for hedging RWE credit risk via credit default swaps (see ). RWE has always pursued a comprehensive risk management policy and has thus coped well in the current financial crisis.
As of September 30, 2008, we had a total of € 9.2 billion in cash and cash equivalents and securities that can be sold at short notice to cover our need for liquidity. Given the relatively low price of RWE credit default swaps, we believe that our existing US$ 5 billion commercial paper programme and our € 20 billion debt issuance programme will allow us to obtain sufficient financing on the capital market. By September 30, we had used US$ 544 million (€ 380 million) of the commercial paper programme. As of the balance-sheet date, the bonds we had issued within the scope of the debt issuance programme amounted to € 9.2 billion and had a weighted average remaining term to maturity of about ten years. € 1.2 billion of them come due by the end of 2011. A CHF 500 million bond has to be redeemed before year-end. We had already repaid a € 1.3 billion bond in April.
Furthermore, RWE has access to a € 3.6 billion syndicated credit line. This facility is held to hedge commercial paper when it matures and has not been used so far. It is divided into a short-term credit line (364 days) in the amount of € 1.6 billion and a long-term credit line (expiring in October 2011) in the amount of € 2.0 billion. The short-term credit line is provided by a syndicate of 20 banks, and the long-term facility by a syndicate of 26 banks.