27. Net financial position and long-term financial receivables and securities - €39,862 million

The following table reports the net financial position and long-term financial receivables and securities on the basis of the items on the consolidated balance sheet.

Millions of euro      
 Notes at Dec. 31, 2013 at Dec. 31, 2012 restated Change 
Long-term loans  27.1  51,113  55,959  (4,846)  -8.7% 
Short-term loans  27.2  2,529  3,970  (1,441)  -36.3% 
Current portion of long-term loans  27.1  4,690  4,057  633  15.6% 
Non-current financial assets included in debt  27.3  (4,951)  (3,576)  (1,375)  -38.5% 
Current financial assets included in debt  27.4  (5,489)  (7,571)  2,082  27.5% 
Cash and cash equivalents  27.5  (8,030)  (9,891)  1,861  18.8% 
Total    39,862  42,948  (3,086)  -7.2% 

Pursuant to the CONSOB instructions of July 28, 2006, the following table reports the net financial position at December 31, 2013, and December 31, 2012, reconciled with net financial debt as provided for in the presentation methods of the Enel Group.

Millions of euro     
 at Dec. 31, 2013 at Dec. 31, 2012 restated Change 
Cash and cash equivalents on hand  1,065  1,027  38  3.7% 
Bank and post office deposits  6,965  8,864  (1,899)  -21.4% 
Securities  17  42  (25)  -59.5% 
Liquidity  8,047  9,933  (1,886)  -19.0% 
Short-term financial receivables  2,232  1,923  309  16.1% 
Factoring receivables  263  288  (25)  -8.7% 
Short-term portion of long-term financial receivables  2,977  5,318  (2,341)  -44.0% 
Current financial receivables  5,472  7,529  (2,057)  -27.3% 
Short-term bank debt  (150)  (283)  133  47.0% 
Commercial paper  (2,202)  (2,914)  712  24.4% 
Short-term portion of long-term bank debt  (1,788)  (714)  (1,074)  -
Bonds and preference shares (short-term portion)  (2,649)  (3,115)  466  15.0% 
Other loans (short-term portion)  (253)  (228)  (25)  -11.0% 
Other short-term financial payables  (177)  (773)  596  77.1% 
Total short-term financial debt  (7,219)  (8,027)  808  10.1% 
Net short-term financial position  6,300  9,435  (3,135)  -33.2% 
Debt to banks and financing entities  (8,287)  (13,282)  4,995  37.6% 
Bonds and preference shares  (41,483)  (41,509)  26  0.1% 
Other loans  (1,343)  (1,168)  (175)  -15.0% 
Long-term financial position  (51,113)  (55,959)  4,846  8.7% 
Net financial position as per CONSOB instructions  (44,813)  (46,524)  1,711  3.7% 
Long-term financial receivables and securities  4,951  3,576  1,375  38.5% 
NET FINANCIAL DEBT  (39,862)  (42,948)  3,086  7.2% 

There are no transactions with related parties for these items.

27.1 Long-term loans (including the portion falling due within 12 months) - €55,803 million

The aggregate includes long-term liabilities in respect of bonds, bank loans and other loans in euro and other currencies, including the portion falling due within twelve months.

The following table shows long-term debt and repayment schedules at December 31, 2013, grouped by loan and interest rate type.

Millions of euro Maturing Balance Nominal value Balance 
  at Dec. 31, 2013 at Dec. 31, 2012 
Bonds:         
- listed, fixed rate 2014-2097 (1)  30,730  31,021  29,882 
- listed, floating rate 2014-2031  6,506  6,545  6,507 
- unlisted, fixed rate 2014-2039  5,463  5,479  6,460 
- unlisted, floating rate 2014-2032  1,433  1,434  1,594 
Total bonds    44,132  44,479  44,443 
Bank loans:         
- fixed rate  2014-2046  966  974  853 
- floating rate  2014-2035  8,031  8,048  11,814 
- use of revolving credit lines  2014-2017  1,078  1,078  1,329 
Total bank loans    10,075  10,100  13,996 
Preference shares: (2)         
- floating rate  2013  - - 181 
Total preference shares    - - 181 
Non-bank loans:         
- fixed rate 2014-2035  1,065  1,065  915 
- floating rate  2014-2030  531  531  481 
Total non-bank loans    1,596  1,596  1,396 
TOTAL    55,803  56,175  60,016 

Millions of euro Current portion Portion falling due at more than 12 months Maturing in 
   2015 2016 2017 2018 Beyond 
Bonds:               
- listed, fixed rate 467  30,263  2,589  3,693  2,480  5,545  15,956 
- listed, floating rate 1,135  5,371  1,436  1,177  346  770  1,642 
- unlisted, fixed rate 986  4,477  - 108  1,085  - 3,284 
- unlisted, floating rate 61  1,372  63  64  65  66  1,114 
Total bonds  2,649  41,483  4,088  5,042  3,976  6,381  21,996 
Bank loans:               
- fixed rate  38  928  66  75  72  279  436 
- floating rate  893  7,138  753  839  1,114  760  3,672 
- use of revolving credit lines  857  221  161  60  - - -
Total bank loans  1,788  8,287  980  974  1,186  1,039  4,108 
Preference shares: (2)               
- floating rate  - - - - - - -
Total preference shares  - - - - - - -
Non-bank loans:               
- fixed rate 116  949  103  98  91  96  561 
- floating rate  137  394  65  61  76  49  143 
Total non-bank loans  253  1,343  168  159  167  145  704 
TOTAL  4,690  51,113  5,236  6,175  5,329  7,565  26,808 

(1) The maturity dates of listed fixed-rate bonds reported here are based on the assumption that the option to extinguish the hybrid bonds issued in September 2013 is exercised at the first possible date for each issue, as reported below. The amortized cost was also calculated using the same assumption.
(2) The preference shares issued by Endesa Capital Finance LLC are perpetual, with an option for early redemption at par as from 2013.

The balance for bonds regards, net of €734 million, the unlisted floating-rate “Special series of bonds reserved for employees 1994-2019”, which the Parent Company holds in portfolio, while Enel.Re (now Enel Insurance NV) holds bonds issued by Enel SpA totaling €30 million.

The table below reports long-term financial debt by currency and interest rate.

Long-term financial debt by currency and interest rate

Millions of euro Balance Nominal value Balance Current average interest rate Current effective interest rate 
 at Dec. 31, 2013 at Dec. 31, 2012 at Dec. 31, 2013 
Euro  38,482  38,741  42,777  3.71%  3.86% 
US dollar  8,467  8,504  8,380  6.04%  6.29% 
Pound sterling  4,486  4,546  4,102  6.00%  6.15% 
Colombian peso  1,662  1,662  1,600  7.60%  7.60% 
Brazilian real  746  748  839  10.00%  10.20% 
Swiss franc  593  595  603  2.85%  2.91% 
Chilean peso/UF  461  473  532  7.30%  9.20% 
Peruvian sol  302  302  349  6.60%  6.60% 
Russian ruble  243  243  347  7.79%  8.39% 
Japanese yen  238  238  304  2.35%  2.38% 
Other currencies  123  123  183     
Total non-euro currencies  17,321  17,434  17,239     
TOTAL  55,803  56,175  60,016     

Long-term financial debt denominated in currencies other than the euro increased by €82 million. The change is largely attributable to repayments of loans falling due denominated in dollars, Russian rubles and the Latin American currencies, partially offset by new borrowing in dollars, pounds sterling, Brazilian reais and Colombian pesos.

Change in the nominal value of long-term debt

Millions of euro Nominal value Repayments Change in own bonds Change in scope of consolidation New financing Exchange rate differences Other Nominal value 
 at Dec. 31, 2012       at Dec. 31, 2013 
Bonds  44,794  (2,952)  (101)  - 3,571  (833)  - 44,479 
Bank loans  14,066  (5,448)  - - 1,573  (91)  - 10,100 
Preference shares  181  (181)  - -     - -
Other loans  1,396  (173)  - 265  192  (81)  (3)  1,596 
Total financial debt  60,437  (8,754)  (101)  265  5,336  (1,005)  (3)  56,175 

Compared with December 31, 2012, the nominal value of long-term debt at December 31, 2013 decreased by €4,262 million, which is the net effect of €8,754 million in repayments, repurchases of €101 million of own bonds, €5,336 million in new loans and €1,005 million in exchange rate losses, of which €265 million due to the change in the scope of consolidation, mainly attributable to the acquisition of a number of companies in the renewable generation sector in the United States that had previously entered into tax partnership agreements, and €3 million in other items.

The main repayments in 2013 concerned bonds and preference shares in the amount of €3,133 million, bank loans totaling €5,448 million and other loans for €173 million.

More specifically, the main bonds maturing in 2013 included:

  • $1,000 million in respect of a fixed-rate bond, issued by Enel Finance International, maturing January 2013;
  • €700 million in respect of a fixed-rate bond issued by International Endesa, maturing in February 2013;
  • €181 million in respect of the early repayment of Endesa Capital Finance preference shares in March 2013;
  • €750 million in respect of a fixed-rate bond, issued by Enel SpA, maturing in June 2013;
  • $400 million in respect of a fixed-rate bond, issued by Endesa Chile, maturing in August 2013.

The main repayments of bank loans in the years included the following:

  • €341 million in respect of repayments of revolving credit lines by Endesa;
  • €293 million in respect of floating-rate bank loans of Endesa;
  • €100 million in respect of repayments of a revolving credit line by Enel SpA;
  • €100 million in respect of repayments of a credit line of Enel Finance International;
  • €250 million in respect of the early repayment of bilateral term loans falling due in 2017 by Enel Finance International;
  • €617 million in respect of the tranche falling due in 2014 of the 2009 Credit Facility by Enel SpA and Enel Finance International;
  • €3,200 million in respect of the early repayment of the Credit Facility falling due in 2017 by Enel Finance International;
  • €360 million in respect of the repayment of subsidized loans held by Group companies.

The main financing contracts finalized in 2013 include:

  • on January 15, 2013, Enel SpA renegotiated a bilateral revolving credit facility in the total amount of €500 million falling due in 2014;
  • on February 8, 2013, Enel SpA and Enel Finance International entered into a revolving forward starting credit facility of about €9.4 billion, falling due in April 2018, which will replace the current €10 billion revolving credit line as from the expiry of the latter, which is scheduled for 2015 under the terms of the contract;
  • on March 18, 2013, Enel Latin America entered into a 5-year loan agreement in the total amount of $100 million;
  • on July 30, 2013, Enel Latin America (Chile) entered into a 5-year loan agreement in the total amount of $100 million;
  • on July 18, 2013, Enel SpA extinguished a bilateral revolving credit facility early, in the total amount of €500 million maturing in 2014 and renegotiated a bilateral revolving credit facility in the total amount of €800 million structured in the following tranches: €400 million falling due in 2015 and €400 million falling due in 2016;
  • on November 14, 2013, Enel Distribuzione entered into a 20-year European Investment Bank loan worth €270 million;
  • on November 28, 2013, Enel Green Power International entered into a 15-year European Investment Bank loan worth €200 million;
  • on December 16, 2013, Enel Green Power International entered into a 12-year loan agreement worth €100 million with the Danish Export Credit Agency;
  • on December 19, 2013, Enel Green Power Latin America entered into a 5-year loan agreement worth $150 million;
  • on December 19, 2013, Inelec entered into a 5-year loan agreement worth $150 million;
  • on December 27, 2013, Slovenské elektrárne entered into a 7-year project financing arrangement worth €133 million;

The main financing operations carried out in 2013 include:

  • the private placement in February, March and April under the Global Medium-Term Notes program of bonds by Enel Finance International, with an Enel guarantee, in the total amount of €485 million, with the following characteristics:
    • €100 million fixed-rate 5% maturing on February 18, 2023;
    • €50 million floating-rate maturing on March 27, 2023;
    • €50 million floating-rate maturing on April 4, 2025;
    • €50 million fixed-rate 4.875% maturing on April 19, 2028;
    • €180 million fixed-rate 4.45% maturing on April 23, 2025;
    • €55 million fixed-rate 4.75% maturing on April 26, 2027;
  • in September, Enel SpA issued hybrid bonds, with the following characteristics:
    • €1,250 million fixed-rate 6.50%, maturing on January 10, 2074 with a call option vesting on January 10, 2019;
    • £400 million fixed-rate 7.75%, maturing on September 10, 2075 with a call option vesting on September 10, 2020;
    • $1,250 million fixed-rate 8.75%, maturing on September 24, 2073 with a call option vesting on September 24, 2023;
  • in September, Emgesa issued bonds in Colombian pesos totaling €212 million;
  • in November, Codensa issued bonds in Colombian pesos totaling €141 million;
  • an increase in drawings by Slovenské elektrárne on committed revolving credit lines in the amount of €185 million;
  • drawings by Endesa on an European Investment Bank (EIB) loan in the total amount of €150 million;
  • drawings by Enel Green Power International floating-rate bank loans in the amount of €170 million;
  • drawings by Enel Distribuzione on financing with EIB funds in the amount of €270 million maturing on June 15, 2033;
  • drawings by Enel Green Power Latin America on floatingrate bank loans in the total amount of €225 million;
  • drawings by Inelec on fixed-rate bank loans in the total amount of €185 million;
  • drawings by Endesa on floating-rate bank loans in the total amount of €171 million;
  • drawings by Endesa on other financing in the total amount of €179 million.

The following table compares the carrying amount and the fair value of long-term debt, including the portion falling due within 12 months, broken down by category. For listed debt instruments, the fair value is given by official prices. For unlisted instruments the fair value is determined using appropriate valuation models for each category of financial instrument and market data at the closing date of the year, including the credit spreads of Enel SpA.

Millions of euro Carrying amount Fair value Carrying amount Fair value 
 at Dec. 31, 2013 at Dec. 31, 2012 
Bonds:         
- fixed rate  36,193  39,517  36,342  38,338 
- floating rate  7,939  8,131  8,101  7,891 
Total bonds  44,132  47,648  44,443  46,229 
Bank loans:         
- fixed rate  966  976  853  932 
- floating rate  9,109  9,026  13,143  12,982 
Total bank loans  10,075  10,002  13,996  13,914 
Preference shares:         
- floating rate  - - 181  181 
Total preference shares  - - 181  181 
Other loans:         
- fixed rate  1,065  1,153  915  959 
- floating rate  531  605  481  476 
Total other loans  1,596  1,758  1,396  1,435 
TOTAL  55,803  59,408  60,016  61,759 

The following tables show the changes in long-term loans for the period, distinguishing current amounts from amounts falling due at more than 12 months.

Long-term loans (excluding current portion)

Millions of euro Carrying amount  
 at Dec. 31, 2013 at Dec. 31, 2012 Change 
Bonds:       
- fixed rate  34,740  33,624  1,116 
- floating rate  6,743  7,885  (1,142) 
Total bonds  41,483  41,509  (26) 
Bank loans:       
- fixed rate  928  803  125 
- floating rate  7,359  12,479  (5,120) 
Total bank loans  8,287  13,282  (4,995) 
Preference shares:       
- floating rate  - - -
Total preference shares  - - -
Other loans:       
- fixed rate  949  816  133 
- floating rate  394  352  42 
Total other loans  1,343  1,168  175 
TOTAL  51,113  55,959  (4,846) 

Current portion of long-term loans

Millions of euro Carrying amount  
 at Dec. 31, 2013 at Dec. 31, 2012 Change 
Bonds:       
- fixed rate  1,453  2,718  (1,265) 
- floating rate  1,196  216  980 
Total bonds  2,649  2,934  (285) 
Bank loans:       
- fixed rate  38  50  (12) 
- floating rate  1,750  664  1,086 
Total bank bonds  1,788  714  1,074 
Preference shares:       
- floating rate    181  181 
Total preference shares  - 181  181 
Other loans:       
- fixed rate  116  99  17 
- floating rate  137  129 
Total other loans  253  228  25 
TOTAL  4,690  4,057  633 

The Group’s main long-term financial debts are governed by covenants containing undertakings by the borrowers (Enel, Endesa and the other Group companies) and in some cases the Parent Company as guarantor that are commonly adopted in international business practice. The main covenants regard the bond issues carried out within the framework of the Global Medium-Term Notes program, loans granted by the EIB and Cassa Depositi e Prestiti, the €10 billion revolving line of credit agreed in April 2010, the Forward Start Facility Agreement entered into on February 8, 2013 in the amount of €9.44 billion and issues of subordinated unconvertible hybrid bonds.

To date none of the covenants have been triggered.

The main commitments in respect of the bond issues in the Global Medium-Term Notes program can be summarized as follows:

  • negative pledge clauses under which the issuer may not establish or maintain (except under statutory requirement) mortgages, liens or other encumbrances on all or part of its assets to secure any listed bond or bond for which listing is planned unless the same guarantee is extended equally or pro rata to the bonds in question;
  • pari passu clauses, under which the securities constitute a direct, unconditional and unsecured obligation of the issuer and are issued without preferential rights among them and have at least the same seniority as other present and future bonds of the issuer itself;
  • specification of default events, whose occurrence (e.g. insolvency, failure to pay principal or interest, initiation of liquidation proceedings, etc.) constitutes a default; under cross-default clauses, the occurrence of a default event in respect of any financial liability (above a threshold level) issued by the issuer or “significant” subsidiaries (i.e. consolidated companies whose gross revenues or total assets are at least 10% of gross consolidated revenues or total consolidated assets) constitutes a default in respect of the liability in question, which becomes immediately repayable;
  • early redemption clauses in the event of new tax requirements, which permit early redemption at par of all outstanding bonds.

The main covenants governing the loans granted to a number of Group companies by the EIB can be summarized as follows:

  • negative pledge clauses, under which Enel undertakes not to establish or grant to third parties additional guarantees or privileges with respect to those already established in the individual contracts by the company or other subsidiaries of the Group, unless an equivalent guarantee is extended equally or pro rata to the loans in question;
  • clauses that require the guarantor (whether Enel SpA or banks acceptable to the EIB) to maintain its rating above a specified grade; in the case of guarantees provided by Enel SpA, the Group’s equity may not fall below a specified level;
  • material changes clauses, under which the occurrence of a specified event (mergers, spin-offs, disposal or transfer of business units, changes in company control structure, etc.) gives rise to the consequent adjustment of the contract, without which the loan shall become repayable immediately without payment of any commission;
  • requirements to report periodically to the EIB;
  • requirement for insurance coverage and maintenance of property, possession and use of the works, plant and machinery financed by the loan over the entire term of the agreement;
  • contract termination clauses, under which the occurrence of a specified event (serious inaccuracies in documentation presented in support of the contract, failure to repay at maturity, suspension of payments, insolvency, special administration, disposal of assets to creditors, dissolution, liquidation, total or partial disposal of assets, declaration of bankruptcy or composition with creditors or receivership, substantial decrease in equity, etc.) triggers immediate repayment.

In 2009 Cassa Depositi e Prestiti granted a loan to Enel Distribuzione that was amended in 2011. The main covenants governing the loan and the guarantee issued by the Parent Company can be summarized as follows:

  • a termination and acceleration clause, under which the occurrence of a specified event (such as failure to pay principal or interest installments, breach of contract obligations or occurrence of a substantive prejudicial event, etc.) entitles Cassa Depositi e Prestiti to terminate the loan;
  • a clause forbidding Enel or its significant subsidiaries (defined in the contract and the guarantee as subsidiaries pursuant to Article 2359 of the Italian Civil Code or consolidated companies whose turnover or total gross assets are at least 10% of consolidated turnover or consolidated gross assets) from establishing additional liens, guarantees or other encumbrances except for those expressly permitted unless Cassa Depositi e Prestiti gives it prior consent;
  • clauses requiring Enel to report to Cassa Depositi e Prestiti both periodically and upon the occurrence of specified events (such as a change in Enel’s credit rating, or breach in an amount above a specified threshold in respect of any financial debt contracted by Enel, Enel Distribuzione or any of their significant subsidiaries). Violation of such obligation entitles Cassa Depositi e Prestiti to exercise an acceleration clause;
  • a clause, under which, at the end of each measurement period (half yearly), Enel’s consolidated net financial debt shall not exceed 4.5 times annual consolidated EBITDA.

The main covenants for the €10 billion revolving line of credit and the Forward Start Facility Agreement are substantially similar and can be summarized as follows:

  • negative pledge clauses under which the borrower (and its significant subsidiaries) may not establish or maintain (with the exception of permitted guarantees) mortgages, liens or other encumbrances on all or part of its assets to secure any present or future financial liability;
  • pari passu clauses, under which the payment undertakings constitute a direct, unconditional and unsecured obligation of the borrower and bear no preferential rights among them and have at least the same seniority as other present and future loans;
  • change of control clause, which is triggered in the event (i) control of Enel is acquired by one or more parties other than the Italian State or (ii) Enel or any of its subsidiaries transfer a substantial portion of the Group’s assets to parties outside the Group such that the financial reliability of the Group is significantly compromised. The occurrence of one of the two circumstances may give rise to (a) the renegotiation of the terms and conditions of the financing or (b) compulsory early repayment of the financing by the borrower;
  • specification of default events, whose occurrence (e.g. failure to make payment, breach of contract, false statements, insolvency or declaration of insolvency by the borrower or its significant subsidiaries, business closure, government intervention or nationalization, administrative proceeding with potential negative impact, illegal conduct, nationalization and government expropriation or compulsory acquisition of the borrower or one of its significant subsidiaries) constitutes a default. Unless remedied within a specified period of time, such default will trigger an obligation to make immediate repayment of the loan under an acceleration clause;
  • under cross-default clauses, the occurrence of a default event in respect of any financial liability (above a threshold level) of the issuer or “significant” subsidiaries (i.e. consolidated companies whose gross revenues or total assets are at least equal to a specified percentage amounting to 10% of gross consolidated revenues or total consolidated assets) constitutes a default in respect of the liabilities in question, which become immediately repayable;
  • periodic reporting requirements.

The main covenants covering the hybrid bonds can be summarized as follows:

  • specification of default events, whose occurrence (e.g. failure to pay principle or interest, insolvency, initiation of liquidation proceedings, etc.) constitutes a default in respect of the liability in question, which in some cases becomes immediately repayable;
  • subordination clauses: each hybrid bond is subordinate to all other bonds issued by the Company and ranks pari passu with all other hybrid financial instruments issued, being senior only to equity instruments;
  • prohibition on mergers with other companies, the sale or leasing of all or a substantial part of the Company’s assets to another company, unless the latter succeeds in all obligations of the issuer.

The undertakings in respect of the bond issues carried out by Endesa Capital under the Global Medium-Term Notes program can be summarized as follows:

  • cross-default clauses under which debt repayment would be accelerated in the case of failure to make payment (above specified amounts) on any financial liability of Endesa or Endesa Capital that is listed or could be listed on a regulated market;
  • negative pledge clauses under which the issuer may not establish mortgages, liens or other encumbrances on all or part of its assets to secure any financial liability that is listed or could be listed on a regulated market, unless an equivalent guarantee is extended equally or pro rata to the bonds in question;
  • pari passu clauses, under which the securities and guarantees have at least the same seniority as all other present and future unsecured and unsubordinated securities issued by Endesa Capital or Endesa.

Finally, the loans granted to Endesa, International Endesa BV and Endesa Capital do not contain cross-default clauses regarding the debt of subsidiaries in Latin America.

Undertakings in respect of project financing granted to subsidiaries regarding renewables and other subsidiaries in Latin America contain covenants commonly adopted in international business practice. The main commitments regard clauses pledging all the assets assigned to the projects in favor of the creditors.

A residual portion of the debt of Enersis and Endesa Chile (both controlled indirectly by Endesa) is subject to cross-default clauses under which the occurrence of a default event (failure to make payment or breach of other obligations) in respect of any financial liability of a subsidiary of Enersis or Endesa Chile constitutes a default in respect of the liability in question, which becomes immediately repayable.

In addition, many of these agreements also contain crossacceleration clauses that are triggered by specific circumstances, certain government actions, insolvency or judicial expropriation of assets.

In addition to the foregoing, a number of loans provide for early repayment in the case of a change of control over Endesa or the subsidiaries.

27.2 Short-term loans - €2,529 million

At December 31, 2013 short-term loans amounted to €2,529 million, a decrease of €1,441 million compared with December 31, 2012. They break down as follows.

Millions of euro Carrying amount Fair value Carrying amount Fair value Carrying amount Fair value 
 at Dec. 31, 2013 at Dec. 31, 2012 restated Change 
Short-term amounts due to banks  150  150  283  283  (133)  (133) 
Commercial paper  2,202  2,202  2,914  2,914  (712)  (712) 
Cash collateral and other financing on derivatives  119  119  691  691  (572)  (572) 
Other short-term financial payables  58  58  82  82  (24)  (24) 
Short-term financial debt  2,529  2,529  3,970  3,970  (1,441)  (1,441) 

Short-term amounts due to banks totaled €150 million. The payables represented by commercial paper relate to issues outstanding at the end of December 2013 in the context of the €6,000 million program launched in November 2005 by Enel Finance International and guaranteed by Enel SpA, which was renewed in April 2010, as well as the €3,209 million program of Endesa Internacional BV (now Endesa Latinoamérica) and Enersis.

At December 31, 2013 issues under these programs totaled €2,202 million, of which €1,388 million pertaining to Enel Finance International and €814 million to Endesa Latinoamérica. For a summary of the fair value balances, broken down by measurement criteria, please see note 7.

27.3 Non-current financial assets included in debt - €4,951 million

Millions of euro     
 at Dec. 31, 2013 at Dec. 31, 2012 Change 
Securities held to maturity  128  130  (2)  -1.5% 
Financial investments in funds or portfolio management products at fair value through profit or loss  24  12  12  100.0% 
Securities available for sale  - (4)  -100.0% 
Financial receivables in respect of Spanish electrical system deficit  1,498  - 1,498  -
Other financial receivables  3,301  3,430  (129)  -3.8% 
Total  4,951  3,576  1,375  38.5% 

For a summary of the fair value balances, broken down by measurement criteria, please see note 7.

“Financial receivables in respect of Spanish electrical system” represent amounts due to Endesa Distribución in respect of the rate deficit system in Spain, which substantially defers part of the remuneration due to distributors for costs incurred that are not covered by billing of ordinary rate revenues. The mechanism, which in substance is equivalent to a loan from Endesa Distribución to the Spanish electrical system, has given rise to a receivable of €1,498 million, which as a result of the introduction of a number of new regulations in 2013 is recognized under “non-current financial assets” rather than under “current financial assets” as was done the previous year.

At December 31, 2013, “other financial receivables” include, among other things:

  • receivables in respect of the State Decommissioning Fund of Slovakia in the amount of €813 million (€653 million at December 31, 2012);
  • receivables in respect of the Electricity Equalization Fund in the amount of €434 million (unchanged at December 31, 2013 and 2012) for reimbursement of the extraordinary costs incurred for the early replacement of electromechanical meters with digital meters;
  • receivables in respect of the reimbursement established by the Authority with Resolution 157/2012 of costs incurred with the termination of the Electrical Worker Pension Fund in the amount of €448 million (€504 million at December 31, 2012). Under the provisions of that resolution, the amounts will be recovered by Enel Distribuzione SpA in equal installments until 2020;
  • the receivable of the Argentine generation companies in respect of the wholesale electricity market deposited with the FONINVEMEM (Fondo Nacional de Inversión Mercado Eléctrico Mayorista) in the amount of €216 million (€281 million at December 31, 2012). The sum was for the construction of three combined cycle plants, two of which were completed in 2010, and will be reimbursed to the generation companies within 120 months of the entry into service of those plants. The loans earn interest at an annual rate of Libor +1%.

27.4 Current financial assets included in debt - €5,489 million

Millions of euro     
 at Dec. 31, 2013 at Dec. 31, 2012 restated Change 
Short-term portion of long-term financial receivables  2,977  5,318  (2,341)  -44.0% 
Receivables for factoring advances  263  288  (25)  -8.7% 
Securities:        
 - securities available for sale  17  42  (25)  -59.5% 
Financial receivables and cash collateral  1,720  1,402  318  22.7% 
Other financial receivables  512  521  (9)  -1.7% 
Total  5,489  7,571  (2,082)  -27.5% 

“Short-term portion of long-term financial receivables” consists of the financial receivable in respect of the Spanish electricity system deficit in the amount of €1,648 million (€4,839 million at December 31, 2012). The change for the period essentially reflects new receivables accrued in 2013 (€3,165 million including new receivables for extra-peninsular generation) and collections received (€4,858 million including the effects of reimbursements in respect of extra-peninsular generation, of which €3,541 million through the assignment of the receivables to the special securitization fund as established by the Spanish government).

For a summary of the fair value balances, broken down by measurement criteria, please see note 7.

27.5 Cash and cash equivalents - €8,030 million

Cash and cash equivalents, detailed in the table below, are not restricted by any encumbrances, apart from €195 million (€194 million at December 31, 2012) primarily in respect of deposits pledged to secure transactions.

Millions of euro     
 at Dec. 31, 2013 at Dec. 31, 2012 restated Change 
Bank and post office deposits  6,965  8,864  (1,899)  -21.4% 
Cash and cash equivalents on hand  1,065  1,027  38  3.7% 
Total  8,030  9,891  (1,861)  -18.8%