Endesa (NYSE:ELE)
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Today ENDESA (NYSE:ELE) received the funds from the securitisation of
its 2005 tariff deficit collection rights, which were acquired by BNP
Paribas y Banesto. The portion of the 2005 tariff deficit corresponding
to ENDESA amounted to 1,683 billion, 44.16% of the total.
The transfer contract was signed on 20 November 2006 at ENDESA’s
headquarters, thus completing a process initiated on 20 October 2006, on
which date the Company awarded a consortium made up of BNP Paribas and
Banesto exclusivity to negotiate the aforementioned receivables
securitisation.
The mechanism for reimbursing the cash owed to the electric utilities
for their regulated activities in 2005 was set in June of this year in
Royal Decree 809/2006. This piece of legislation provides for the
recovery of the 2005 tariff deficit - which amounts to Euro 3.810
billion for the entire sector - by means of its inclusion in the
regulated electricity tariff, divided on a straight-line basis over the
next 14.5 years.
At 30 September 2006, ENDESA had regulatory accounts receivable balances
amounting to Euro 1,281 billion in connection with the non-mainland
deficit generated between 2001 and 2006 and Euro 1,194 billion in
connection with the regulated revenue shortfall incurred between 1
January 2006 and 30 September 2006. Whenever these amounts are
recognised by the authorities, or, as appropriate, the mechanism for
their recovery by the electric utilities is set, ENDESA plans to
monetise these line items by securitising them or transferring the
collection rights as was done with the 2000-2002 deficit, again in 2003,
and as has just been done with the 2005 deficit.
This milestone has an immediate effect on ENDESA’s
outstanding financial debt, thanks to the monetisation this quarter of a
collection right which, otherwise, would have been collected over a 14.5
year period.
* This document may contain certain forward-looking statements regarding
anticipated financial and operating results and statistics that are
subject to risks and uncertainties as well as to material risks, changes
and other factors which may be difficult to predict, including, without
limitation, those factors described in the Documento de Registro de
Acciones of Endesa filed within the Comisión
Nacional del Mercado de Valores and in the Form 20-F of Endesa filed
within the Securities and Exchange Commission, both for the fiscal year
ended December 31, 2005. For all of these forward-looking statements, we
claim the protection of the safe harbour for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995.
Today ENDESA (NYSE:ELE) received the funds from the securitisation
of its 2005 tariff deficit collection rights, which were acquired by
BNP Paribas y Banesto. The portion of the 2005 tariff deficit
corresponding to ENDESA amounted to 1,683 billion, 44.16% of the
total.
The transfer contract was signed on 20 November 2006 at ENDESA's
headquarters, thus completing a process initiated on 20 October 2006,
on which date the Company awarded a consortium made up of BNP Paribas
and Banesto exclusivity to negotiate the aforementioned receivables
securitisation.
The mechanism for reimbursing the cash owed to the electric
utilities for their regulated activities in 2005 was set in June of
this year in Royal Decree 809/2006. This piece of legislation provides
for the recovery of the 2005 tariff deficit - which amounts to Euro
3.810 billion for the entire sector - by means of its inclusion in the
regulated electricity tariff, divided on a straight-line basis over
the next 14.5 years.
At 30 September 2006, ENDESA had regulatory accounts receivable
balances amounting to Euro 1,281 billion in connection with the
non-mainland deficit generated between 2001 and 2006 and Euro 1,194
billion in connection with the regulated revenue shortfall incurred
between 1 January 2006 and 30 September 2006. Whenever these amounts
are recognised by the authorities, or, as appropriate, the mechanism
for their recovery by the electric utilities is set, ENDESA plans to
monetise these line items by securitising them or transferring the
collection rights as was done with the 2000-2002 deficit, again in
2003, and as has just been done with the 2005 deficit.
This milestone has an immediate effect on ENDESA's outstanding
financial debt, thanks to the monetisation this quarter of a
collection right which, otherwise, would have been collected over a
14.5 year period.
* This document may contain certain forward-looking statements
regarding anticipated financial and operating results and statistics
that are subject to risks and uncertainties as well as to material
risks, changes and other factors which may be difficult to predict,
including, without limitation, those factors described in the
Documento de Registro de Acciones of Endesa filed within the Comision
Nacional del Mercado de Valores and in the Form 20-F of Endesa filed
within the Securities and Exchange Commission, both for the fiscal
year ended December 31, 2005. For all of these forward-looking
statements, we claim the protection of the safe harbour for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995.