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“finAncialactivitIes_The maturity of the first installment of the syndicated loan for Similarly, the financing requirements arising from the investmentin the new company headquarters in Parque Ti-USD $200,000,000 in June 2012, together with the associatedshort-term accounting requirement and impact on liquidity indicators,made it favorable for Entel to enter the debt markets CLP $10,094,608,084 for the year.tanium were covered from our own resources and totaledduring the financial year.In March, advanced payments were made for loans of the acquiredcompany, Transam, as well as for the costs of rescindingTo increase financing options and sources, the company signedtwo series of local bonds with the Chilean Securities and InsuranceSupervisor in August for a total value of UF 5 million, withassociated derivatives.three series in UF and CLP being registered for each. The three During the year, Entel continued its strategy of contracting derivativecontracts that cover its full net exposure to exchangecurrent registers have a joint limit of UF 5 million and an expirydate for the payment of capital of between 5 and 21 years. The rate fluctuations arising from debt liabilities in dollars and obligationsto pay suppliers in foreign currencies. This has been121bonds may be placed on the market within 36 months followingregistration. After evaluating the market and the various options,a decision was taken to postpone the placement of these swaps. The latter have also partly covered the risks associatedbalanced by structuring forwards, options, and cross currencysecurities and give priority to bank finance instead. In November, with fluctuations in the Libo interest rates upon which internationalcredit is based.a loan was structured on the international debt market and fullpayment of the facility was obtained in December from Tokio-Mitsubishi and Scotiabank. This is a three-year loan with a single With respect to exchange rate hedges provided by forward contracts,the Group has retained an average purchase portfolio ofamortization in 2014 and was used for the advanced payment ofthe full amortization installment of the current syndicated loan approximately USD $360 million with a range of terms based onof equal value, which has remaining amortizations of equal value the best rate prevailing at the close.in 2013 and 2014. The financial conditions of this new loan wereattractive when compared with similar placements during the Cash surplus balances continued to be invested in line with ayear, both in the local bond market and in bank loans provided by strict investment policy and risk classification for issuers.financial institutions in Chile. As a result of the above, the company’sdebt structure remained long-term at the end of the year.In short-term financial activities, occasional use was made ofoverdrafts and commercial bills to finance temporary cash deficits.In October, the final payment was made for the purchase ofTransam, bringing the total for the year to CLP $3,564,609,540, inaddition to the payment made in 2010.Report 2011