ACS Group Annual Report - Grupo ACS

Cash flow hedges (interest rate)The objective of using these derivatives was to limit changes in interest rates on its project borrowings and to guarantee fixedinterest rates, mainly by entering into interest rate swaps as the borrowings are arranged and used.Most of the hedges are interest rate swaps which mature on the same date as or slightly earlier than the underlying amountshedged.Hedges of this type are mainly related to the various syndicated loans within the Group as well as project financing and other noncurrentfinancing, both at 31 December 2008 and 31 December 2007 (Notes 17 and 18).In relation to syndicated loans, the following hedges were arranged:• Loan of EUR 1,500 million. Various interest rate swaps were arranged to hedge 100% of this loan, which mature in July 2010.• The syndicated financing of the Urbaser Group is hedged by interest rate swaps amounting to EUR 390,000 thousand, whichmature in June 2010.• The syndicated financing of the SPL Group is hedged by interest rate swaps amounting to EUR 180,000 thousand, which maturein September 2011.Noteworthy are the following hedges in relation to limited recourse financing of projects and debts:• Interest rate hedge to cover 90% of the syndicated loan financing the purchase of 7.2% de Iberdrola, S.A. and maturing in July2011.• Interest rate swap to hedge the loan relating to the purchase of 25.08% of Hochtief, A.G. for EUR 632,000 thousand, whichmatures in 2012.• Interest rate swap to hedge 75% to 100% of the financing of solar power farms maturing between 2019 and 2022.• Hedging of the project financing of wind-powered facilities. These relate mostly to interest rate swaps maturing between 2009and 2021.• Terminal del Sudeste, S.A. entered into an interest rate swap, the notional amount of which totalled EUR 43, 000 thousand,maturing in full in 2019.• Autovía de La Mancha has hedges amounting to EUR 93,500 thousand instrumented in an interest rate swap maturing in full in2032.• The concession company Reus-Alcover has various interest rate hedges totalling EUR 38,940 thousand and maturing in full in2035.• The Concesionaria Santiago Brión, S.A. entered into two interest rate swaps amounting to EUR 27,000 thousand and maturingin full in 2032.Economic and Financial Report105