By Giuseppe Fonte
ROME (Reuters) - The Italian government is set to guarantee a 12 billion euro ($12.75 billion) bank credit facility for Enel (BIT:ENEI), two sources close to the matter said, as Rome moves to shield the country's utilities against volatility on energy markets.
The state help would offer a buffer to Italy's biggest utility in case a potential spike in energy prices impacts derivative trades and causes a rise in the group's margin calls, which stood at around 9 billion euros at the end of September.
While it is trying to contain the impact of margin calls, the utility is also busy with an asset sale plan aimed at cutting its net debt to 50 billion-52 billion euros by the end of next year from nearly 70 billion euros at end-September.
Under a temporary easing in European Union rules on state aid approved after Russia's invasion of Ukraine, Italy's credit export agency SACE is able to provide guarantees covering loans granted to companies facing difficulties due to sky-high energy prices.
The sources, who asked not to be identified due to the sensitivity of the matter, said the economy and industry ministers were expected to sign off on the decree providing the state guarantees to Enel in January, following in-depth internal scrutiny.
Prime Minister Giorgia Meloni's government has no objections on giving guarantees, but the process entails numerous approval steps, including the green light from Italy's Audit Court.
According to one of the sources, the credit line would be provided by a pool of Italian lenders comprising Treasury-owned Cassa Depositi e Prestiti (CDP), UniCredit (LON:0RLS), Intesa Sanpaolo (BIT:ISP), Banco BPM and BPER.
Enel, SACE, UniCredit, Intesa (LON:0HBC) Sanpaolo and Banco BPM declined to comment. BPER and CDP were not immediately available to comment.
Shares in Enel, which have lost around 27% of their value so far this year, were down 0.9% in afternoon trade.
Other Italian utilities are expected to apply for the state-guarantee scheme. Italy's second-biggest utility A2A told Reuters on Tuesday it would tap the credit facility backed by SACE in January for some hundred million euros.
($1 = 0.9412 euros)