DRAVA, KUPA, RJE»INA, LOKVARKA, LI»ANKA LIKA, DOBRA ...

NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS OF THE HEP GROUP (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2010
24. NON-CURRENT BORROWINGS
Interest rates 31 December 2010 31 December 2009
HRK’000 HRK’000
Domestic bank borrowings EURIBOR+ (1.00%-6.35%) 1,040,610 1,062,199
Foreign bank borrowings EURIBOR+ (0.50%-4.74%) 3,010,835 2,929,555
Liabilities to domestic companies EURIBOR+ 1.95% 4,661 13,835
Loan from RWE 12,369 19,577
Rescheduled debt - 36,048
Total long-term borrowings 4,068,475 4,061,214
Current portion (1,184,921) (947,747)
Long-term portion 2,883,554 3,113,467
Loans from domestic banks are secured by bills of exchange and promissory notes. Loans from foreign banks are partly
secured by state guarantees (loan for the project of special state care, and IBRD loan) and total assets of Plomin.
During 2010, the following loan facilities, agreed in previous years, were fully utilised:
- EBRD loan (EUR 24 million), for the purpose of the Termal Power Generation Project: HRK 38,368 thousand
utilized in 2010;
- EBRD loan (EUR 4.4 million), for the Energy Efficiency Project: HRK 1,745 thousand utilized in 2010;
- Club loan (EUR 125 million), for the Capital Investment Project – Block C of the TPP Sisak: HRK 72,909 thousand
utilized in 2010.
Unutilized balances represent the loan facility of KfW Entwicklungsbank in the amount of EUR 50,000,000 for financing
the projects of the subsidiaries HEP ESCO and HEP Renewable Energy Sources. The key lending terms and conditions
are as follows: utilisation period of 5 years; quarterly repayment of the loan principal over a period of 10 years following
the expiry of the utilization period. The amount drawn under the KfW loan at 31 December 2010 was EUR
470,000, i.e. the unused loan funds amounted to EUR 49,530,000.
As the unfavourable economic trends in Croatia throughout 2010 prevented the utilization of the loan, intensified
draw downs are expected in 2011. At the time of the conclusion of the agreement with KfW, which was in late
2008, a Financial Grant Agreement was concluded with the Government of the Federal Republic of Germany, under
which Hrvatska elektroprivreda received a GEF grant in the amount of EUR 0.6 million. The total balance utilized as
of 31 December 2010 was EUR 0.3 million.
To finance investments and operations in 2010, HEP d.d. signed two bilateral long-term loan agreements
during the year in the amount of EUR 10 million and EUR 100 million with SG- Splitska banka d.d. and Deutsche
bank, respectively, such loans being guaranteed by the Government of the Republic of Croatia. The loans mature
in 5 years..
Liabilities to domestic and foreign companies represent mainly extended payment terms for the purchases
of tangible assets. If no repayment deadline has been specified in the underlying agreement any such liability is
included within long-term liabilities.
109
HEP ANNUAL REPORT 2010
CHAPTER 6 - FINANCIAL STATEMENTS