Annual Report - EDP

notes to the EDP consolidated - Energias de Portugal, and company S.A. financial statementsfor the years ended 31 december 2012 and 2011Notes to the Consolidated and Company Financial Statementsfor the years ended 31 December 2012 and 2011The effective interest rates of the derivative financial instruments relating to financing operations at 31 December 2011 were as follows:GroupNotional CurrencyEDP PaysEDP ReceivesInterest rate contractsInterest rate swaps 2,574,715 EUR [ 5.01% - 0.88% ] [ 5.50% - 0.88% ]Interest rate swaps 253,896 USD [ 5.82% - 5.79% ] 4.31%Interest rate swaps 92,036 PLN 5.41% 4.90%Currency interest rateCIRS (currency interest rate swaps) 730,313 EUR / GBP [ 5.54% - 3.26% ] [ 8.63% - 6.63% ]CIRS (currency interest rate swaps) 1,901 USD / BRL [ 12.98% - 11.42% ] 4.96%CIRS (currency interest rate swaps) 99,800 USD / JPY 6.80% 3.11%CIRS (currency interest rate swaps) 77,008 EUR / PLN [ 4.13% - 4.01% ] 1.39%CIRS (currency interest rate swaps) 177,911 EUR / CHF [ 4.20% - 4.18% ] 3.51%Exchange rate contractsCurrency forwards 253,896 BRL / USD44. COMMITMENTSFinancial, operating and real guarantees granted by the EDP Group, not included in the statement of financial position as at 31 December 2012 and 2011, are analysedas follows:GroupCompanyThousands of EurosDec 2012 Dec 2011 Dec 2012 Dec 2011Financial guaranteesEDP, S.A. 312,237 268,890 312,237 268,890HC Energia Group 37,539 33,083 - -EDP Brasil Group 867,623 645,811 - -EDP Renováveis Group 3,411 5,656 - -Other 3,711 3,711 - -1,224,521 957,151 312,237 268,890Operating guaranteesEDP, S.A. 745,324 770,668 745,324 770,668HC Energia Group 334,226 357,709 - -EDP Brasil Group 433,613 322,233 - -EDP Renováveis Group 1,208,810 1,100,414 - -Other 9,272 10,094 - -2,731,245 2,561,118 745,324 770,668Total 3,955,766 3,518,269 1,057,561 1,039,558Real guarantees 29,504 19,820 - -The financial guarantees contracted include, at 31 December 2012 and 2011, 1,139,074 thousands of Euros and 743,665 thousands of Euros, respectively, relating toloans obtained by Group companies and already included in the consolidated debt. These include guarantees of 129,845 thousands of Euros at 31 December 2012 forloans obtained by Brazilian companies to finance the construction of hydroelectrical power plants, which have counter-guarantees of 51,938 thousands of Eurosreceived by EDP from partners in these projects.EDP and its subsidiaries are required to provide bank or corporate operating guarantees for the current generation and distribution activities. The total operatingguarantees outstanding include, at 31 December 2012 and 2011, 397,266 thousands of Euros and 465,989 thousands of Euros, respectively, of guarantees provided tomarket operators to enable EDP and its subsidiaries to participate in the energy markets.Regarding the information disclosed above, the Group also has project finance loans with usual guarantees for these loans, namely pledges or promissory pledgesover shares, bank accounts and assets relating to the projects. At 31 December 2012 and 2011 these loans amounted to 1,018,578 thousands of Euros and 888,776thousands of Euros, respectively, and are included in the Group’s consolidated debt (see note 35).In addition, regarding the information disclosed above, EDPR NA is providing its tax equity investors with standard corporate guarantees typical of these agreementsto indemnify them against costs they may incur as a result of fraud, willful misconduct or a breach of EDPR NA of any operational obligation under the tax equityagreements. As at 31 December 2012 and 2011, EDPR's obligations under the tax equity agreements, in the amount of 901,301 thousands of Euros and 942,123thousands of Euros, are reflected on the balance sheet Institutional Partnerships in US Wind farms.Real guarantees, as at 31 December 2012, includes 9,615 thousands of Euros (31 December 2012: 6,482 thousands of Euros) related with guarantees provided toprojects and loans obtained in Brazil.In addition EDP has constituted an escrow deposit in the amount of 361,445 thousand of Euros (348,713 thousand of Euros non-current and 12,732 thousand of Euroscurrent, as presented in note 35, associated with several loans contracted with the EIB. This escrow deposit will be reduced by the repayment of these loans.EDP - Annual Report 2012239