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 2011Licenses equivalent to total emissions during the civil year are returned to the regulatory entity of each country by the end of the fourth month of the subsequent year(see notes 18, 24 and 39).The movements in the portfolio of CO 2 licenses held for trading and classified as inventories are analysed as follows:GroupCO 2 (Ton) Dec 2011 Dec 2010CO 2 licenses held for trading on 1 January 116,920 3,931,328Licenses acquired in the market 5,196,229 7,129,846Emission licenses transferred to the trading portfolio 693,289 3,087,262Licenses sold -5,443,141 -14,031,516CO 2 licenses held for trading on 31 December 563,297 116,920CO 2 Licenses for trading on 31 December (in thousands of Euros) 103 807Purchases and sales of licenses are booked based on the listed price on the transaction date. Emission licenses transferred to the trading portfolios are classified asInventories (see note 24), in accordance with Accounting policy - note 2 I).Fair value corresponds to the spot price (closing price) at the end of December in each year.49. RELEVANTS OR SUBSEQUENT EVENTSEDPR agrees with CTG on the first investment in minority stakes in wind farmsOn 20 December 2012, EDP Renováveis S.A. (“EDPR”), 77.5% controlled by EDP, entered into an agreement with China Three Gorges International (Hong Kong)Company Limited (“CTGI HK”), a fully owned subsidiary of China Three Gorges (“CTG”), to sell a 49% equity shareholding and 25% of the outstanding shareholdersloans in EDP Renováveis Portugal, S.A. (“EDPR PT”) for a total consideration of 359 millions of Euros.The transaction is subject to customary regulatory approvals with closing expected to occur by the first half of 2013.The transaction scope covers 615 MW in operation in Portugal, with an average age of 6 years, as well as 29 MW ready-to-build, remunerated under a feed-in-tariffregime in accordance to Decree-Law 33-A/2005, article 4. This operation corresponds to a non-controlling interests sale, without loss of control, in 2013 accordingwith the accounting policy 2 b).This transaction was agreed in the context of the EDP/CTG strategic partnership established in December 2011 and that entered into force on May 2012.Capital Research and Management Company notifies qualified shareholding in EDPOn 24 January 2013, Capital Research and Management Company notified EDP that, in accordance with article 20 of the Portuguese Securities Code, it holds aqualifying shareholding of 73,625,043 ordinary shares of EDP, which corresponds to 2.0135% of EDP’s share capital and 2.0135% of the respective voting rights.EDP signed credit facility of 1,600 millions of EurosOn 31 January 2013, EDP – Energias de Portugal, S.A. has signed a five-year term loan facility in the amount of 1,600 millions of Euros with a group of 16 domestic andinternational banks.The new facility will be used during 2013 to refinance two existing and fully draw loans: (i) a Revolving Credit Facility (“RCF”) of 925 millions of Euros signed in 2008 andmaturing in April 2013, which will be early prepaid and cancelled and (ii) a RCF of 1,100 millions of Euros signed in 2006, to be repaid at maturity in November 2013.The 5 year tenor of the new facility, with a 50% amortisation in the 4th anniversary, aims to extend the average life of EDP’s debt and reinforce financial flexibility. Forthe current rating level the facility bears an interest rate of Euribor plus 4%.The new facility was self-arranged as a Club Deal and received the support of a strong group of domestic and international banks. “Mandated Lead Arrangers” areBanco Bilbao Vizcaya Argentaria, S.A., Banco BPI, BNP Paribas, Citi, HSBC Bank plc Sucursal en España, ICBC, ING Commercial Banking, J.P. Morgan, Société GénéraleCorporate & Investment Banking, The Royal Bank of Scotland plc, Caixa – Banco de Investimento, S.A., Deutsche Bank Luxembourg S.A., The Bank of Tokyo-MitsubishiUFJ, Ltd, Banco Espirito Santo, Caja de Ahorros y Pensiones de Barcelona "la Caixa", Santander Global Banking & Markets. BNP Paribas acts as a Facility Agent.Spanish Government publishes Royal Decree-Law with regulatory modifications for the electricity sectorOn 4 February 2013, the Spanish Government published in the Official State Gazette the Royal Decree-Law 2/2013 (“RDL 2/2013”) that encompasses a set of regulatorymodifications applicable to the Spanish electricity sector and affecting the wind energy assets.The main regulatory modifications that the RDL 2/2013 envisages vis-à-vis the Royal Decree 661/2007 with an impact on EDP Renováveis S.A. (“EDPR”) effective from 1January 2013, are as follows:All the energy production facilities operating under the special regime will be remunerated according with the current feed-in tariff schemes for the remaininguseful life of the asset;The operators of the facilities under the special regime currently operating under the market option have the option to select, until 15 February 2013 and for theremaining useful life of the asset, a remuneration based on the electricity wholesale market price without the renewable energy premium, the cap or the floor;The index used to annually update all the regulated activities in the electricity sector will be the annual inflation excluding energy products and food prices, andany impact of tax changes.EDP - Annual Report 2012247