ENDESA Receives the Funds from the Securitisation of Its Tariff Deficit Collection Rights, Which in 2005 Totalled Euro 1,683 Bil
November 22 2006 - 11:22AM
Business Wire
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 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. 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.
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