Annual Report - EDP

: financial report :Capex in new hydro capacity in Portugal (34%of expansion capex) totalled EUR 442 million in2012, the bulk of which devoted to the conclusionof Alqueva II (EUR 28 million in 2012; totalaccumulated capex of EUR 187 million), a 256MWhydro repowering with pumping which startedoperations in December 2012; and the ongoingconstruction/repowering works in 5 other plants(EUR 359 million in 1,468MW due in 2014/16): 2repowerings (963MW) and 3 new plants (505MW).Capex in new wind and solar capacity (46%of expansion capex), at EDP Renováveis level,totalled EUR 607 million and was mainly incurredin the construction of +440MW new capacity inUS (+215MW), Spain (+110MW), Romania (+65MW,of which 39MW of solar PV), Italy (+40MW),France and Portugal (+10MW).In Brazil, capex totalled EUR 388 million, ofwhich: i) EUR 114 million were invested in theconstruction of Pecém, a 360MW coal plant to beconcluded in first quarter of 2013 – the first group(total accumulated capex of EUR324 million)was commissioned in December 2012, while thesecond group (EUR 327 million already invested)has started the synchronisation with the electricsystem in February 2013; and ii) EUR 152 millionin the construction of Jari, a new 373MW hydrofacility due in 2015; and in the repowering ofMascarenhas (5MW which started operationsin February 2013).EDP Group’s consolidated net debt at the endof 2012 amounted to EUR 18,233 million.As at December 2012, the Group’s gross nominaldebt totalled EUR 20,076 million. When comparedto December 2011, the Group’s debt was nearlyEUR 1,668 million higher, mostly due to theexecution of the planned investment programme.EDP Group’s consolidated net debt at the end ofthe 2012 amounted to EUR 18,233 million, due to(i) the amount of cash and equivalents and other asat December 2012 that stood at EUR 1,695 million,which was held, mainly, at EDP SA and EDP FinanceBV (EUR 1,169 million), EDP Renewables (EUR 246million), and the Group’s Brazilian subsidiaries (EUR212 million), and (ii) the collateral deposits in theamount of (EUR 428 million).In terms of maturity, EDP Group’s nominalconsolidated debt breaks down into 17% in shorttermand 83% in medium and long-term, with anaverage maturity of 4 years.During 2012, EDP Group maintained its policy ofcentralizing funding at EDP S.A., EDP FinanceB.V. and EDP Sucursal, which represented 86%of the Group’s consolidated debt. The remainderconsists of debt contracted by the Brazilianholdings (8%) and project finance debt mainlyfrom the subsidiaries of the EDP RenewablesGroup (5%) and EDP Produção Group (1%).In the first half of 2012, EDP S.A. issued a newretail bond in the Portuguese market in theamount of EUR 250 million, for a 3 year period.In the second half of the year, the EDP FinanceBV took advantage of a period of lower volatilityin international capital markets to issue a 5 yearEurobond in the amount of EUR 750 million, anda CHF 125 million bond, with a tenor of 6 years,both under the MTN programme. These issuesallowed EDP to reach different markets andinvestors and to strengthen its liquidity position.In August, EDP signed a bilateral loan with ChinaDevelopment Bank for a total of EUR 1,000million, with a 5 year tenor. This loan is part of thecommitments set out in the strategic partnershipestablished between EDP and China ThreeGorges, which was announced on December 2011.In October, EDP signed a EUR 800 millionMulticurrency Term Facility Agreement with Bankof China, with a 3 year tenor.In January 2013, EDP entered into a 5 year Euroterm loan in the amount of EUR 1,600 million. Thisnew facility, involving 16 domestic and internationalbanks, is intended to replace the existing EUR 925million revolving credit facility maturing in April2013 and the EUR 1,100 million revolving creditfacility maturing in November 2013.During 2012 the Group received EUR 301 millionfrom the FADE, the Spanish Electricity DeficitAmortisation Fund, through its subsidiaryHC Energía.The Group contracted in March three projectfinance for wind farms in Spain, in the total5.1.4. DEBT - EDP GROUPEUR Million Dec 2012 Dec 2011 ∆ %Debt - Short term 3,496 2,706 29%Bonds 640 1,655 -61%Bank loans 2,519 724 248%Other loans 15 15 8%Commercial paper 322 312 3%Debt - Long term 16,580 15,702 6%Bonds 9,771 8,817 11%Bank loans 6,535 6,791 -4%Other loans 77 94 -18%Commercial paper 197 0 100%Nominal debt 20,076 18,408 9%Collateral Deposits (428) (68) 527%Interest accrued 332 304 9%Fair value hedge adjustments 115 72 60%Fair Value of Hedging Derivatives (166) (105) 58%Total Financial Debt 19,928 18,612 7%Cash and equivalents and other 1,696 1,732 -2%Net Debt 18,233 16,880 8%EDP - Annual Report 2012157