Net financial debt and changes in the period are detailed in the table below.
|Millions of euro|
|at Dec. 31, 2016||at Dec. 31, 2015||Change|
|- bank borrowings||50||-||50|
|- debt assumed and loans from subsidiaries||1,200||-||1,200|
|- financial receivables from others||(5)||(5)||-|
|- debt assumed and loans to subsidiaries||(27)||(72)||45|
|Net long-term debt||13,632||14,426||(794)|
|- short-term portion of long-term borrowings||973||3,062||(2,089)|
|- short-term bank borrowings||810||2||808|
|- cash collateral received||1,107||1,669||(562)|
|- short-term portion of long-term financial receivables||(1)||-||(1)|
|- short-term portion of loans assumed/granted||(45)||(46)||1|
|- other short-term financial receivables||(6)||(8)||2|
|- cash collateral paid||(1,012)||(86)||(926)|
|- net short-term financial position with Group companies||1,419||331||1,088|
|- cash and cash equivalents and short-term securities||(3,038)||(5,925)||2,887|
|Net short-term debt/(liquidity)||207||(1,001)||1,208|
|NET FINANCIAL DEBT||13,839||13,425||414|
Net financial debt at December 31, 2016 amounted to €13,839 million, an increase of €414 million, the result of a deterioration in the net short-term position (€1,208 million), partly offset by a decrease in net long-term financial debt (€794 million).
The main transactions in 2016 impacting debt can be summarized as follows:
- the repayment of €3,000 million in respect of two bonds, of which €2,000 million at fixed rate and €1,000 million at floating rate, issued in 2010 as part of a pan-European bond issue for retail investors, which matured on February 26, 2016;
- a non-binding voluntary offering issued on January 14, 2016 and completed on January 20, 2016, involving the repurchase for cash of bonds issued by Enel in the amount of €750 million, with a view to optimizing the Company’s liability structure through the active management of maturities and the cost of funds;
- the repayment of €64 million in respect of four tranches of INA and ANIA bonds;
- the assignment of €1,200 million, as part of the nonproportional partial spin-off of Enel Green Power SpA to Enel SpA, in respect of a long-term fixed-rate borrowing, initially to the subsidiary Enel Green Power International BV and, subsequently to the demerger from Enel Green Power International BV, of assets and liabilities to Enel Finance International NV in respect of the latter;
- the agreement of a loan with UniCredt SpA in the maximum amount of €500 million, accessible in three tranches until March 15, 2017, falling due on July 15, 2020 and drawn in the amount of €50 million at December 31, 2016.
Cash and cash equivalents amounted to €3,038 million, a decrease on December 31, 2015 of €2,887 million, mainly attributable to the above bond repayments and repurchases and normal central treasury functions performed by Enel SpA.
|Millions of euro|
|Cash and cash equivalents at the start of the period||5,925||6,972||(1,047)|
|Cash flows from operating activities||2,511||1,062||1,449|
|Cash flows from investing/disinvesting activities||(409)||(560)||151|
|Cash flows from financing activities||(4,989)||(1,549)||(3,440)|
|Cash and cash equivalents at the end of the period||3,038||5,925||(2,887)|
Cash flows from financing activities came to a negative €4,989 million (€1,549 million in 2015). They were largely generated both by the repayment of bonds and the repurchase of own bonds in the amount of €3,848 million, and by payment of dividends for 2015 totaling €1,627 million.
Cash flows from investing activities were a negative €409 million (a negative €560 million in 2015). They include €360 million in respect of the recapitalization, capital contributions and capitalization of transaction costs for the investment held in OpEn Fiber SpA, as well as the acquisition by Enel SpA of the rights of withdrawal and rights of sale granted to the shareholders of Enel Green Power SpA that did not approve the non-proportional partial demerger of Enel Green Power SpA to Enel SpA (€26 million).
In 2016, the cash requirements generated by financing and investing activities were funded by liquidity generated by operating activities (a positive €2,511 million, compared with €1,062 million in 2015), essentially reflecting dividends received from subsidiaries (€2,882 million) and the use of cash and cash equivalents, which at December 31, 2016 consequently amounted to €3,038 million (€5,925 million at the start of the year).