Annual Report 2010 - AdP

Financial Risk Management - Complied Description
Dispatch no. 101/09-SETF, of 30-01
Procedures adopted within the terms of risk evaluation
and the respective coverage measures
Y N N.A.
Diversification of financial instruments x Opted in favour of private bank loans,
private loans and private bonds
Diversification of available interest rates modes x Opted to maintain a balance between
fixed and variable interest rates
Diversification of credit entities x Opted in favour of EIB, and private investors
Contracting of risk coverage management instrument in x Contracted so as to maintain a fixed
accordance with prevailing market conditions
Adoption of active policies to strengthen permanent capital
interest rate coverage ratio of 60 to 66%
Remunerated liability consolidation: transforming short term debt x Investment needs have been met by
into medium and long term debt under favourable conditions permanent funding
Contracting operations that minimise x The favourable option of the EIB has
financial costs (all-in-cost) resulted in below market costs
Minimisation of real guarantee payments x The only guarantee provided has been
state authorisation for some EIB credit lines
Minimisation of restrictive clauses (covenants)
Measures achieved with a view to optimising
the financial structure of the company
x The contract covenants existing
are relatively reduced
Adoption of policies minimising the allocation x The option was in favour of long term
of third party capital for financial coverage of investments financing and not the minimisation of
third party capital taking into account
the structural bases of the sector
Option in favour of investments with proven social/ x Opted in favour of investment with EF
business profitability, favouring European Cohesion Funds and profitability ensured by contracts
and Equity with the state
Utilisation of self financing and disinvestment revenues
Inclusion in Annual Reporting
x The phase in the business cycle still
generates a low level of cash-flow. These
have been channelled into self-financing
Description of the evolution of the annual average
rate of financing over the last five years
x
Interest annually incurred with remunerated debts
and other charges over the last five years
x
Analysis of the efficiency of financial policies and the
deployment of financial risk management instruments
x
Incorporation of the effects of variations in
the fair value of swap contracts into DF 2009
x
Key:
Y – Yes
N - No
N.A. - Non Applicable