LONG-TERM AND STABLE DEBT PROFILE
EDPR’s total Financial Debt increased by 326 million euros to 4.1 billion euros, reflecting US Dollar appreciation, investments done in the period and the proceeds from the execution of the asset rotation transactions. Loans with EDP group, EDPR’s principal shareholder, accounted or 74% of the debt, while loans with financial institutions represented 26%.
To continue to diversify its funding sources EDPR keeps on executing top quality projects enabling the company to secure local project finance at competitive costs. In 2015, EDPR closed three project finance transactions: i) in Brazil for wind farms under construction with total capacity of 120 MW, in a total amount of 306 million reais; in Belgium for a 14 MW wind farm in operation, for 16 million euros; and in Poland for a 54 MW wind farm in operation, for 167 million of Polish Zlotys.
As of December 2015, 51% of EDPR’s financial debt was Euro denominated, 40% was funded in US Dollars, related to the company’s investment in the United States, and the remaining 9% was mostly related with debt in Polish Zloty and Brazilian Real.
EDPR continues to follow a long-term fixed rate funding strategy, matching the Operating Cash-Flow profile with its financial costs and therefore mitigating interest rate risk. Therefore, as of December 2015, 90% of EDPR’s financial debt had a fixed interest rate and only 14% had maturity schedule until 2018. 40% of EDPR’s financial debt had maturity in 2018, reflecting a set of 10-year loans granted by EDP in 2008, and 46% in 2019 and beyond. As of December 2015, the average interest rate was 4.3%, lower versus 5.2% in December 2014.
Liabilities referred to Institutional Partnerships increased to 1,165 million euros from 1,067 million euros in 2014, due to US dollar appreciation, the benefits captured by the tax equity partners and the establishment of new institutional tax equity financing structures during the period.