Net financial debt and changes in the period are detailed in the table below.
|Millions of euro|
|at Dec. 31, 2017||at Dec. 31, 2016||Change|
|- bank borrowings||1,039||50||989|
|- debt assumed and loans from subsidiaries||1,200||1,200||-|
|- financial receivables from others||(6)||(5)||(1)|
|debt assumed and loans to subsidiaries||-||(27)||27|
|Net long-term debt||10,774||13,632||(2,858)|
|- short-term portion of long-term borrowings||245||810||(565)|
|- short-term bank borrowings||3,654||973||2,681|
|- cash collateral received||256||1,107||(851)|
|- short-term portion of long-term financial receivables||(1)||(1)||-|
|- short-term portion of loans assumed/granted||(27)||(45)||18|
|- other short-term financial receivables||1||(6)||7|
|- cash collateral paid||(2,074)||(1,012)||(1,062)|
|- net short-term financial position with Group companies||2,912||1,419||1,493|
|- cash and cash equivalents and short-term securities||(2,489)||(3,038)||549|
|Net short-term debt/(liquidity)||2,477||207||2,270|
|NET FINANCIAL DEBT||13,251||13,839||(588)|
Net financial debt at December 31, 2017 amounted to €13,251 million, a decrease of €588 million, the result of an improvement in the net long-term debtor position of €2,858 million, partly offset by an increase of €2,270 million in net short-term financial debt.
The main transactions in 2017 impacting debt can be summarized as follows:
- the repayment of the residual €909 million of a bond issued in 2007 in the amount of €1,500 million, which was partially redeemed in 2016;
- the redemption of four tranches of INA and ANIA bonds totaling €65 million;
- the repurchase of own unlisted floating-rate bonds from the “Serie speciale riservata al personale 1994-2019” in the amount of €19 million;
- an additional drawing of €450 million on the loan granted by UniCredit SpA the previous year (at December 31, 2016 the facility had been drawn in the amount of €50 million);
- the agreement of new loans from UniCredit SpA and UBI Banca SpA in the respective amounts of €200 million and €150 million;
- the agreement of a dollar-denominated loan from Bank of America in the amount of €199 million at the exchange rate prevailing at issue ($227 million).
Cash and cash equivalents amounted to €2,489 million, a decrease of €549 million on December 31, 2016, reflecting the effects of the above financial transactions, the payment of dividends for 2016 and the normal operation of the centralized treasury function performed by Enel SpA.
|Millions of euro|
|Cash and cash equivalents at the start of the year||3,038||5,925||(2,887)|
|Cash flows from operating activities||2,465||2,511||(46)|
|Cash flows from investing/disinvesting activities||(48)||(409)||361|
|Cash flows from financing activities||(2,966)||(4,989)||2,023|
|Cash and cash equivalents at the end of the year||2,489||3,038||(549)|
Cash flows from financing activities came to a negative €2,966 million (€4,989 million in 2016). They were largely generated by the repayment of bonds and the payment of dividends for 2016 totaling €1,830 million.
Cash flows from investing activities were a negative €48 million (€409 million in 2016), and were essentially generated by:
- €30 million in changes in property, plant and equipment and intangible assets as a result of capital expenditure;
- €18 million from the increase in the value of equity investments in subsidiaries, reflecting the following transactions: the acquisition of Tynemouth Energy Storage Limited (€5 million) and Enel M@p (€12 million), and the formation of Enel Global Thermal Generation Srl with the subscription and payment of its entire share capital (€1 million).
The cash requirements generated by financing and investing activities were funded by liquidity generated by operating activities (a positive €2,465 million, compared with €2,511 million in 2016), essentially reflecting dividends received from subsidiaries (€2,977 million) and the use of cash and cash equivalents, which at December 31, 2017 consequently amounted to €2,489 million (€3,038 million at the start of the year).