ENDESA Grants Banesto and BNP Paribas the Securitization of Its 2005 Tariff Deficit Collection Rights
October 24 2006 - 3:25PM
Business Wire
ENDESA (NYSE:ELE) has awarded the consortium made up of Banesto and
BNP Paribas the exclusive securitization of the collection rights
on the revenue shortfall in connection with the remuneration for
regulated activities generated in fiscal 2005. As of 31 December,
2005, the portion of said shortfall corresponding to ENDESA
amounted to a total of Euro 1.683 billion. The mechanism for
reimbursing the moneys 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 3.811
billion for the overall sector- by means of its inclusion in the
regulated electricity tariff, divided on a straight-line basis over
the next 14.5 years. The contract governing the transfer of the
collection rights is expected to be formalised in November, when
the Company will also receive the funds, with the corresponding
impact on ENDESA�s financial debt, since the collection rights will
be monetised in fiscal 2006 rather than over the next 14.5 years.
In 2006, the revenue shortfall in remunerating regulated activities
performed between 1 January, 2006 and 31 August, 2006 and financed
by certain electric utilities amounted to Euro 2.172 billion. *
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
Comisi�n 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. ENDESA (NYSE:ELE) has
awarded the consortium made up of Banesto and BNP Paribas the
exclusive securitization of the collection rights on the revenue
shortfall in connection with the remuneration for regulated
activities generated in fiscal 2005. As of 31 December, 2005, the
portion of said shortfall corresponding to ENDESA amounted to a
total of Euro 1.683 billion. The mechanism for reimbursing the
moneys 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 3.811 billion for
the overall sector- by means of its inclusion in the regulated
electricity tariff, divided on a straight-line basis over the next
14.5 years. The contract governing the transfer of the collection
rights is expected to be formalised in November, when the Company
will also receive the funds, with the corresponding impact on
ENDESA's financial debt, since the collection rights will be
monetised in fiscal 2006 rather than over the next 14.5 years. In
2006, the revenue shortfall in remunerating regulated activities
performed between 1 January, 2006 and 31 August, 2006 and financed
by certain electric utilities amounted to Euro 2.172 billion. *
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.
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