ACCIONA, S.A. AND SUBSIDIARIES (Consolidated Group ...

Each division applies its own risk evaluation and control policy. Maximum acceptable levels of
risk for each business and consistency and uniformity with the Group's overall risk management
policy are controlled at Group level.
Interest rate risk
Interest rate fluctuations change the future flows from assets and liabilities that bear floating-rate
interest.
Interest rate risk is particularly important in relation to the financing of infrastructure projects,
concession arrangements, the construction of wind farms or solar facilities and other projects in
which project profitability is affected by possible changes in interest rates, since it is directly
linked to project cash flows.
Based on the Acciona Group's projections of the trend in interest rates and of debt structure
targets, hedging transactions are carried out by arranging derivatives that mitigate these risks. The
level of debt hedged in each project depends on the type of project in question and the country in
which the investment is made.
The reference interest rate for the borrowings arranged by the Acciona Group companies is
mainly Euribor for transactions denominated in euros and Libor for transactions denominated in
US dollars. The borrowings arranged for projects in Latin America are normally tied to the local
indexes customarily used in the local banking industry.
Sensitivity test on derivatives and debt
The financial instruments exposed to interest rate risk are mainly floating-rate borrowings and
derivative financial instruments.
In order to be able to analyse the effect that a possible fluctuation in interest rates might have on the
Group's accounts, a simulation was performed which assumed a 50-basis point increase and
decrease in interest rates at 31 December 2011 and 2010.
The analysis of sensitivity to upward or downward changes of 0.50% in floating Euribor interest
rates gave rise to a sensitivity in the Group’s consolidated income statement arising from an
increase or decrease in financial results due to interest payments of EUR 13,332 thousand at 31
December 2011.
The analysis of the sensitivity to upward or downward changes in the long-term interest rate curve
with respect to the fair value of interest rate derivatives included in cash flow hedges, arranged by
the Group at 31 December 2011 and irrespective of the consolidation method used, gave rise to an
increase or decrease in financial derivatives borrowings, as follows (in thousands of euros):
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