Annual Report
of Enel Finance International N.V.
at 31 December 2024
2
Contents
Director’s report 3
Financial statements for the year ended 31 December 2024 19
Statement of income or loss and other comprehensive income 20
Statement of financial position 21
Statement of changes in equity 22
Statement of cash flows 23
Notes to the financial statements 24
Other information 77
Report of the independent auditor 78
3
Director’s report
Director’s report
4
General information
The Management of the Company hereby presents its financial statements for the financial year ended on
31 December 2024.
Enel Finance International N.V. (“the Company”) is a public company with limited liability, where 74.999%
of the shares are held by Enel Holding Finance S.r.l (direct parent) and 25.001% of the shares are held by
Enel S.p.A., both companies, have their seats in Rome, Italy. 100% of the shares of Enel Holding Finance
S.r.l. are held by Enel S.p.A. Therefore, Enel S.p.A. is the ultimate controlling shareholder of the Company.
The Company is registered with the trade register of the Dutch chamber of commerce under number
34313428. The Company operates as a financing company for the Enel Group (“Enel”), raising funds
through bond issuances, loans and other facilities and on turn lending the funds so raised to the companies
belonging to the Enel Group.
Significant events in 2024
A dual-tranche 1,750 million euro "Sustainability-Linked Bond"
On 16 January 2024 the Company launched a dual-tranche “Sustainability-Linked bond” for institutional
investors in the Eurobond market for a total of 1,750 million euros.
The issue is structured in the following two tranches:
- Euro 750million at a fixed rate of 3.375%, with issuance date set on 23 January 2024, maturing
23 January 2028:
• the issue price has been set at 99.727% and the effective yield at maturity is equal to 3.445%;
• the interest rate will remain unchanged to maturity, subject to the joint achievement by the Enel
Group of the following Sustainability Performance Targets (“SPTs”). In particular:
▪ for the KPI related to the “Proportion of CAPEX aligned to the EU Taxonomy (%)”, the
achievement of a SPT equal to or higher than 80% on 31 December 2026 for the 2024-2026
period;
▪ for the KPI related to the “Scope 1 GHG emissions Intensity relating to Power Generation
(gCO2eq/kWh)”, the achievement of a SPT equal to or less than 125gCO2eq/kWh on
31 December 2026;
• if one or both of the above mentioned SPTs are not achieved, a step-up mechanism will be applied,
increasing the rate by 25 bps, as of the first interest period subsequent to the publication of the
relevant assurance report issued by an external verifier;
- Euro 1,000 million at a fixed rate of 3.875%, with issuance date set on 23 January 2024, maturing
23 January 2035:
• the issue price has been set at 98.792% and the effective yield at maturity is equal to 4.013%;
• the interest rate will remain unchanged to maturity, subject to the joint achievement by the Enel
Group of the following SPTs. In particular:
▪ for the KPI related to the “Scope 1 GHG emissions Intensity relating to Power Generation
(gCO2eq/kWh)”, the achievement of a SPT equal to or less than 72gCO2eq/kWh on
31 December 2030;
5
▪ for the KPI related to the “Renewable Installed Capacity Percentage (%)”, the achievement of
a SPT equal to or higher than 80% on 31 December 2030;
• if one or both of the above mentioned SPTs are not achieved, a step-up mechanism will be applied,
increasing the rate by 25 bps, as of the first interest period subsequent to the publication of the
relevant assurance report issued by an external verifier.
The issue, which has an average duration of approximately eight years, has an average coupon of 3.66%.
A dual-tranche USD 2,000 million "Sustainability-Linked Bond"
On 19 June 2024 the Company launched a dual-tranche “Sustainability-Linked bond” for institutional
investors in the US and international markets for a total of USD 2,000 million.
The issue is structured in the following two tranches:
- USD 1,250million at a fixed rate of 5.125%, with issuance date set on 26 June 2024, maturing
26 June 2029:
• the issue price has been set at 98.878% and the effective yield at maturity is equal to 5.384%;
• the interest rate will remain unchanged to maturity, subject to the achievement by the Enel Group
of the Sustainability Performance Target (“SPT”), equal to or less than 125gCO2eq/kWh at 31
December 2026:
• if the above mentioned SPTs are not achieved, a step-up mechanism will be applied, increasing the
rate by 25 bps, as of the first interest period subsequent to the publication of the relevant assurance
report issued by an external verifier;
- USD 750 million at a fixed rate of 5.500%, with issuance date set on 26 June 2024, maturing
26 June 2034:
• the issue price has been set at 98.379% and the effective yield at maturity is equal to 5.715%;
• the interest rate will remain unchanged to maturity, subject to the achievement of the SPT, equal
to or less than 72gCO2eq/kWh at 31 December 2030;
• if the above mentioned SPTs are not achieved, a step-up mechanism will be applied, increasing the
rate by 25 bps, as of the first interest period subsequent to the publication of the relevant assurance
report issued by an external verifier.
The issue, which has an average duration of approximately 7 years, has an average cost in euros of
approximately 4%.
Lending Operations
During the reporting year the Company has resolved to enter as lender into several new intercompany
financial agreements to support the financing of the Enel Group’s strategy.
Please see a disclosure of long-term and short-term loans and facility agreements granted to Enel Group
Companies in the notes 6 and 9 of the financial statements.
Share premium repayment
On 27 June 2024 the Company repaid a share capital premium in amount of Euro 4,300 million to its parent
companies. Transaction was executed by means of financial service agreement with Enel S.p.A
6
Overview of the Company’s performance and financial position
Income statement highlights
Millions of euro
2024
2023
Change
Net interest income/(expense)
470
511
(41)
Other operating expense
4
5
(1)
Net financial income/ (expense)
-
(16)
16
Income/(Loss) before taxes
466
490
(24)
Income Taxes
131
140
(9)
Net income
335
350
(15)
Net interest income totaled to Euro 470 million reflecting a decrease of Euro 41 million compared with
the prior year. A decrease was mainly attributed to higher interest expenses (Euro 165 million) driven
among others by an application of step-up mechanism for non-achieving SDG goals set for 2023. Such
decrease was partly offset by increase of net interest income from derivatives (Euro 107 million) and higher
interest income from lending portfolio (Euro 17 million).
Other operating expenses decreased to Euro 4 million in 2024, which was Euro 1 million lower than in
previous year.
Net financial expense totaled to Euro nil million mainly showing a mitigation of foreign exchange rate
expenses by net financial income from derivatives.
Income taxes amounted to Euro 131 million in 2024. A decrease of Euro 9 million reflected the lower
taxable profit recorded in 2024. The effective tax rate was 28.1% (28.6% in 2023) compared with the
standard Dutch tax rate 25.8%.
7
Analysis of the Company financial position
Millions of euro
at Dec. 31,
2024
at Dec.
31,
2023
Change
Loans and financial receivables:
- long-term loans and receivables
41,485
45,613
(4,128)
- short-term loans and receivables
7,080
8,018
(938)
Derivatives covering FX risk exposed from loans and receivables
(90)
(103)
13
Gross financial debt:
- Bonds
41,254
41,206
48
- Commercial papers
1,801
2,136
(335)
- Deposits from Group and associate companies
202
179
23
- Other borrowings
4
-
4
Derivatives covering FX risk exposed from debt
53
457
(404)
Cash collateral on derivatives
316
500
(184)
Cash and cash equivalents
1
3
(2)
Net non-current assets/ (liabilities)
(133)
(104)
(29)
Net current assets/ (liabilities)
(230)
(143)
(87)
Deferred tax assets/ (liabilities)
568
407
161
Shareholders' Equity
5,683
10,213
(4,530)
Long-term loans and financial receivables totaled to Euro 41,485 million shrinking by Euro 4,128
million. This was largely attributable to decrease in loans granted to Enel subsidiaries and associated
companies in Spain (Euro 3,350 million), Brazil (Euro 460 million), in Italy (Euro 243 million), in Chile
(Euro 73 million), in Mexico (Euro 19 million), Costa Rica (Euro 6 million) and Panama (Euro 4 million).
Such increase was partly offset by an increase of loans to a Dutch associated company (Euro 16 million)
and reversal of expected credit loss allowance (Euro 11 million).
Short-term loans and financial receivables decreased by Euro 938 million totaling to Euro 7,080
million. The decrease was recorded mainly due to decrease in financing to Enel subsidiaries and affiliated
companies in Chile (Euro 588 million), in Italy (Euro 304 million), in Greece (Euro 67 million), in Peru (Euro
3 million), in Poland (Euro 3 million), in Korea (Euro 1 million), in Vietnam (Euro 1 million) and an increase
of expected credit loss allowance (Euro 1 million).
The decrease was partly offset by increase in loans to Enel Group companies in in Mexico (Euro 22 million),
in South Africa (Euro 6 million) and Germany (Euro 2 million).
Derivatives covering FX risk exposed from loans and receivables decreased by Euro 13 million
mainly as a result of the development in the fair value.
Gross financial debt amounted to Euro 43,261 million, of which Euro 31,858 million in respect of financing
connected with achievement of SDG.
8
Millions of Euro
at Dec. 31,
2024
at Dec. 31,
2023
Gross
long-term
debt
including
current
portion
Gross
short-term
debt
Gross debt
Gross
long-term
debt
including
current
portion
Gross
short-
term
debt
Gross
debt
Gross financial debt
41,254
2,007
43,261
41,206
2,315
43,521
of which:
-debt linked with the achievement of SDGs
30,057
1,801
31,858
29,262
2,136
31,398
Debt connected with achievement of SDGs/Total gross
financial debt (%)
74%
72%
Bonds stood at Euro 41,254 million, having an increase of Euro 48 million mainly due to matured bonds
(Euro 4,941 million) partly offset by newly issued debt (Euro 3,622million), exchange rates on the
outstanding bonds denominated in non-Euro currencies (Euro 1,216 million), an increase of costs to be
amortised (Euro 60 million), a cash flows adjustment due to application of step-up clause for several SDG
bonds (Euro 73 million), capitalized interest on zero coupon bonds (Euro 12 million) and fair value
adjustment of GBP SDG bond (Euro 6 million)
Commercial papers declined by Euro 335 million due to a decrease of new notes issued.
Deposits from Group and associate companies decreased by Euro 23 million
Derivatives covering debt decreased by Euro 404 million mainly due to a development of fair value of
derivatives designed as cash flow hedges and fair value hedge.
Cash collateral on derivatives pledged to counterparties in relation to Credit Support Annexes (CSA)
totaled to Euro 316 million.
Cash and cash equivalents amounted to Euro 1 million (Euro 3 million as of 31 December 2023).
Net non-current liabilities increased by Euro 29 million totaling to Euro 133.
Net current liabilities increased by Euro 106 million totaling Euro 249 million as of 31 December 2023.
Deferred tax assets increased by Euro 161 million reflecting temporary differences attributed to hedging
transactions accrued directly in other comprehensive income and temporary differences attributed to cost
capitalization of bond repurchasing, interest carry forwards and impairment of financial assets accrued in
profit and loss.
Shareholders equity amounted to Euro 5,683 million as of 31 December 2024, decreased by Euro 4,530
million over 2024 year ended, as a result of a share premium repayment (Euro 4,300 million) and a
decrease of hedge and hedging cost reserves (Euro 565 million). This decline was offset by the net profit
for the period (Euro 335 million).
9
Main Risks and uncertainties
In compliance with the provisions in Dutch Accounting Standard 400, the Company has drawn up elements
of its risk section as follows.
Methodology
Enel Finance International N.V. (“EFI”) adopts risk governance and control arrangements defined at Group
level, applicable for all wholly owned companies and companies with controlling interest, with specific
reference to financial risks (market, credit and liquidity risks). In order to mitigate its risk exposure, the
Company conducts specific analysis, monitoring, management and control activities.
The Company operates within Group guidelines and policies, which provide capital markets and treasury
operational framework. Based on current power of attorney, hedging are the subject of Board of Directors
consideration and approval.
Current or planned improvements in the risk management system
The Board of Directors considers that the existing system of risk management and internal controls
provides reasonable assurance that risks are properly assessed and managed to achieve business
objectives.
The most significant risks and the risk reduction measures taken
As part of its operations, the Company is exposed to a variety of financial risks, namely liquidity, interest
rate, foreign exchange, credit and counterparty risk.
The Company is willing to bear a low-to-moderate level of residual risk for those factors that are intrinsically
related to the pursuit of its mission of providing financial services, including funding, lending and liquidity
management, to Enel Group companies
Financial risks
Credit risk and counterparty risk
Lending and hedging transactions expose the Company to credit and counterparty risk, i.e. the possibility
of a deterioration in the creditworthiness of its counterparties that could have an adverse impact on the
expected value of the creditor position or could lead to a failure to honor their obligations.
The lending activity is the most important source of credit risk, and, for the very nature of its activity, the
Company is prepared to bear a moderate level of risk. However, such level of risk is mitigated as borrowers
are related parties and in case of specific risk situations, deemed not in line with acceptable level, has been
further reduced receiving a guarantee by a relevant shareholder with higher creditworthiness.
The Company has a consistent counterparty risk exposure to banking counterparties, stemming from
derivative transactions traded for hedging purposes and short term treasury activity. The Company has a
very low appetite to counterparty risk and pursues risk mitigation through the selection of counterparties
with a high credit standing and the adoption of specific standardized contractual frameworks that contain
risk mitigation clauses and possibly the exchange of cash collateral.
Liquidity risk
Liquidity risk is the risk that the Company, while solvent, would not be able to discharge its obligations in
a timely manner or would only be able to do so on unfavorable terms owing to situations of tension or
systemic crises (credit crunches, sovereign debt crises, etc.) or changes in the perception of Company
riskiness by the market.
10
Among the factors that define the risk perceived by the market, the credit rating assigned to Enel by rating
agencies plays a decisive role, since it influences its ability to access sources of financing and the related
financial terms of that financing. A deterioration in the credit rating could therefore restrict access to the
capital market and/or increase the cost of funding, with consequent negative effects on the performance
and financial situation of the Company. Enel’s long term rating was: (i) “BBB” with a stable outlook for
Standard & Poor’s; (ii) “BBB+” with a stable outlook for Fitch; and (iii) “Baa1” with a stable outlook for
Moody’s. Short-term rating at the end of the year was: (i) “A-2” for Standard & Poor’s; (ii) “P-2” for Fitch;
and (iii) “F2” for Moody’s.
The Company is prepared to bear a moderate to low level of risk. The liquidity risk management is designed
to maintain a level of liquidity sufficient to meet its obligations over a specified time horizon, without having
recourse to additional sources of financing, as well as to maintain a prudential liquidity buffer sufficient to
meet unexpected obligations. In addition, in order to ensure that its medium and long-term commitments
could be met, the Company pursues a borrowing strategy that provides for a diversified structure of
financing sources to which it can turn and a balanced maturity profile. Additionally, ENEL SpA is the
guarantor for the repayment of the issued Bonds and Commercial Papers, which is a relevant consideration
for management with respect to their liquidity risk management procedures.
Please see Risk management section of financial statements for more detailed information about liquidity
risk.
Exchange rate
Due to its international funding and lending activity, the Company is significantly exposed to exchange rate
risk associated with cash flows and value of financial assets and liabilities denominated in foreign currencies.
Consistently with Enel Group risk policy and with the Company low risk appetite, the currency profiles of
funding and lending portfolios are balanced by making recourse to derivative transactions, with the aim of
minimizing the residual exposure, or by means of a back to back structure to prevent high hedging fee
associated to not liquid currencies or in the case of high volatility in the underling financial operation.
Please see Risk management section of financial statements for more detailed information about exchange
rate risk.
Interest rate risk
The Company is exposed to the risk that changes in the level of interest rates could produce unexpected
changes in net financial expense or the value of financial assets and liabilities measured at fair value,
related to its funding, lending and hedging portfolios.
The exposure to interest rate risk derives mainly from the variability of the terms of financing and lending,
in case of new issues, and from the variability of the cash flows of floating-rate assets and liabilities.
The policy for managing interest rate risk aims to contain financial expense and its volatility by optimizing
the Company’s portfolio of financial assets and liabilities and by entering financial derivatives on OTC
markets.
A certain level of interest rate risk is intrinsic in the Company’s mission and has been actively managed to
ensure value creation.
Please see Risk management section of financial statements for more detailed information about interest
rate risk.
11
Compliance risks
The Company, as a global issuer, is exposed to compliance risks with applicable laws and regulation, as
well as fiscal risk. No risk appetite is defined for compliance risks and the Company control activities aim
at ensuring full compliance and consequently, no residual risk is acceptable.
Compliance with tax regulation
The Company may be subject to unfavorable changes in the respective tax laws and regulations. The
financial position of the Company may be adversely affected by new laws, changes in the interpretation of
existing laws or tax policy. The Company adopts a conservative approach based on an open collaboration
with tax authorities.
Compliance with financial legislation and regulation
The Company is committed to a high level of compliance with financial laws, regulation and standards.
Internal monitoring activities allow prompt identification of possible breaches of compliance and consequent
remediation actions, when needed. No issues of non-compliance have been detected.
Compliance with bond and loan agreements
Bonds final terms and loan agreements prescribe a set of covenants, which the Company should comply
with. Any breaches and defaults may have high adverse effect on the Company’s activity.
Internal monitoring activities allow prompt identification of possible breaches of compliance and consequent
remediation actions, when needed.
Digital technology risks
Cyber security
The speed of technological developments that constantly generate new challenges, the ever-increasing
frequency and intensity of cyber-attacks and the attraction of critical infrastructures and strategic industrial
sectors as targets underscore the potential risk that, in extreme cases, normal company operations could
grind to a halt.
In this context, cyber security risk represents the possibility that cyber-attacks could compromise corporate
information systems with the main consequence being the interruption of services and the theft of sensitive
information, with both financial and reputational impacts.
Being a part of the Enel Group the Company seeks to use cutting age technologies, to design ad hoc
business processes, to strengthen people’s awareness and to implement regulatory requirement for IT
security. In addition, the Enel Group has developed an IT risk management methodology founded on “risk-
based” and “cyber-security by design” approaches. Thus, integrating the analysis of business risks into all
strategic decisions. The Enel Group has also created its own Cyber Emergency Readiness Team (CERT) in
order to proactively respond to any IT security incidents.
Digitalization, IT effectiveness and service continuity
Following the Enel Group the Company is carrying out a digital transformation of how it manages and is
digitizing its business processes. A consequence of this digital transformation is that the Company is
exposed to risks related to the functioning of the IT systems implemented throughout the Company, which
could lead to service interruptions or data loss and a consequent increase in operating costs with significant
reputational and financial impacts.
These risks are managed using a series of measures developed in the Enel Group by Global Digital Solutions
unit, which is responsible for guiding Enel’s digital transformation.
12
Risks and strategic opportunities associated with climate change
The energy transition characterized by a gradual reduction of CO2 emissions has risks and opportunities
connected both with changes in the regulatory and legal context trends in technology development and
competition, electrification customer behavior and the consequent market developments.
The Company has acknowledged that mitigating climate change will take an effort.
Since 2020 the Company has included in its funding contracts a mechanism that links the cost of financing
to the achievement throughout the Enel Group of one or more sustainability targets identified in the
"Sustainability-Linked Financing Framework", a document that extends the Sustainability-Linked approach
to all financial debt instruments. Indicators, targets and principles have been defined to govern the
development of sustainable finance throughout the Enel Group, linking the financial strategy to
sustainability objectives. The "Sustainability-Linked Financing Framework" is updated annually, in line with
the objectives defined in the Enel Group's Strategic Plan.
More information can be obtained from the investor relations section of Enel S.p.A. official website
(https://www.enel.com/investors/investing/sustainable-finance).
The Company’s financial instruments and financial operations may therefore have an interest rate or other
financial or structural terms linked to the achievement throughout the Enel Group of targets for the
reduction of direct and indirect greenhouse gas emissions (SDG 13 "Fight against climate change") or for
the growth of installed capacity powered by renewable sources (SDG 7 "Affordable and clean energy") or
the percentage of capital expenditures, carried out over a given period, in activities that qualify as
environmentally sustainable according to the criteria set out in Article 3 of the EU Taxonomy Regulation
(2020/852).
In 2023 one of such targets was not accomplished as the Enel Group's emissions reduction was not
sufficient to achieve the Scope 1 GHG emissions intensity target related to electricity generation set for
that year. As a result, several Sustainability-Linked instruments issued by the Company are subject to an
increase in the related interest margin but with no material financial impact. For more details, please refer
to the note 1.
The performance of these targets throughout the Enel Group is periodically monitored by an external
auditor and is published by the Enel Group in the Annual Report.
Decarbonisation of the Company’s lending portfolio is strictly related to an execution of the Enel Group
climate change strategy. Exposure to risks is minimized through a focus on the business on renewables,
grids and customers. Several revolving credit lines granted to the Enel Group companies contain the link
to sustainability targets defined for a lender. The achievement of these targets in disclosed in an annual
report of a particular lender.
Quantification of the impact on the result and financial position if the main financial
risks materialize
In 2024 the Company was exposed to exchange risk in relation with non-Euro denominated debt. There
was a significant exposure to fluctuation of the Euro against the U.S. dollar, which has recently been subject
to market volatility, British pound and Swiss franc.
13
At 31 December 2024 risk was fully covered by corresponding derivatives.
Millions of euro
at Dec. 31,
2024
Gross debt
Derivatives
After risk
mitigation
Book
value
Notional
value
Euro
20,031
20,170
48.4%
21,478
41,648
100.0%
US dollar
17,970
18,135
43.5%
(18,135)
-
0.0%
Pound sterling
3,115
3,205
7.7%
(3,205)
-
0.0%
Swiss franc
138
138
0.3%
(138)
-
0.0%
Total Non-Euro currencies
21,223
21,478
51.6%
(21,478)
-
0.0%
Total
41,254
41,648
100.0%
-
41,648
100.0%
At 31 December 2023 risk was fully covered by corresponding derivatives.
Millions of euro
at Dec. 31,
2023
Gross debt
Derivatives
After risk
mitigation
Book
value
Notional
value
Euro
20,510
20,757
49.7%
20,968
41,725
100.0%
US dollar
16,374
16,547
39.7%
(16,547)
-
0.0%
Pound sterling
3,940
4,039
9.7%
(4,039)
-
0.0%
Swiss franc
382
382
0.9%
(382)
-
0.0%
Total Non-Euro currencies
20,696
20,968
50.3%
(20,968)
-
0.0%
Total
41,206
41,725
100.0%
-
41,725
100.0%
The exchange risk exposure from loans and financial receivables granted in non-Euro currency is limited to
4% in 2024 (5% in 2023) and covered by derivatives part of which is not designed as hedge for accounting
purposes.
The future significant variations in exchange rates would not materially and adversely affect the Company’s
financial position.
Please see Risk Management section of these Financial Statements for sensitivity analysis on exchange
rate.
As shown in the table below, in 2024 the Company has low exposure to interest rate risk, nevertheless the
risk had not been fully eliminated. The Company used derivative instruments aiming at transforming
floating rate liabilities into fixed rate liabilities.
Millions of euro
at Dec. 31,
2024
Before risk mitigation
After risk
mitigation
Floating rate
50
0.1%
-
-
Fixed rate
41,598
99.9%
41,648
100.0%
Total
41,648
100.0%
41,648
100.0%
14
The table below represented the exposure to interest risk in in 2023.
Millions of euro
at Dec. 31,
2023
Before risk mitigation
After risk
mitigation
Floating rate
150
0.4%
-
0.0%
Fixed rate
41,575
99.6%
41,725
100.0%
Total
41,725
100.0%
41,725
100.0%
The future significant variations in interest rates would not materially and adversely affect the Company’s
financial position.
Related Parties
The main activity of Enel Finance International N.V. is to operate as financing company of the Enel Group,
raising funds through bonds issuance, loans and other facilities and on turn lending the funds so raised to
the companies belonging to Enel Group or associated companies; all the transactions are part of the
ordinary operations of the Company and are settled on arm’s length basis in line with Standard intra-Group
contract market prices.
Outlook
The Company should evolve normally during 2025, with the aim to maintain the funding and lending
activities currently ongoing, keeping on supporting Enel Group in its developing and execution of strategic
business plan.
Governance
Board of Directors composition
The Company’s organization is characterized by a Board of Directors charged with managing the Company
and a Shareholders’ Meeting.
On 1 December 2024 a new director Ms W. Parente joined the Board. On 31 January 2025. Mr. A.J.M.
Nieuwenhuizen resigned from the position of a Managing Director.
The Company is a so-called Public Interest Entity (“Organisatie van Openbaar Belang”), since it has issued
listed bonds on EU-regulated markets, which requires the establishment of an audit committee. The
Company however makes use of the exemption in Article 3(a) of the Dutch Decree on the Audit Committee
("Besluit instelling auditcommissie") as foreseen in Article 39(3)(a) of Directive 2006/43/CE, as amended
by Directive 2014/56/EU of the European Parliament and of the Council, as its Parent Company (Enel
S.p.A.) is an entity that fulfils the requirements set out in paragraphs 39(1), (2) and (5) of Directive
2006/43/CE, as amended by Directive 2014/56 EU, Article 11(1), Article 11(2) and Article 16(5) of
Regulation (EU) No 537/2014 of the European Parliament and of the Council.
Pursuant to Article 19, subsection 2 of Italian Legislative Decree 39/2010 - as amended by Legislative
Decree 135/2016, implementing Directive 2014/56 EU - the audit committee of Enel S.p.A. coincides with
the “collegio sindacale” (board of statutory auditors). According to the legislation in force, the members of
the board of statutory auditors of Enel S.p.A. must possess the requisites of integrity, professionalism and
independence imposed upon the statutory auditors of listed companies, as supplemented (only as regards
the professionalism requisites) by specific provisions of the bylaws.
15
The Company believes that the composition of its Board of directors has a broad diversity of experience,
expertise and backgrounds, and that the backgrounds and qualifications of the directors, considered as a
group, provide a significant mix of experience, knowledge, abilities and independence that we believe will
allow our Board of Directors to fulfill its responsibilities and properly execute its duties.
The Company is in compliance with the Regulation on Sound Remuneration Policies pursuant to the
Financial Supervision Act 2011 (the “Regeling Beheerst beloningsbeleid Wft 2011”).
The directors, with relation to Enel, are not remunerated for their services directly and any interests they
hold in relation to the Parent Company and any expense incurred in their directorship are declared as such
in the financial statements of the Parent company where necessary. The independent directors with no
relation to Enel, are remunerated in accordance with Remuneration policy of the management board of
Enel Finance International N.V., amended by the Shareholder (Resolution of the Sole Shareholder
23.01.2017) (see note 21).
Diversity of Board of Directors
The gender diversity within the Board members of the Company is currently 33% therefore the Company
met the target set for 2024, which is in line with the best practice in the Netherlands.
For next year the Company confirms that the selection criteria are only measurable skills, experience,
knowledge and personal qualities.
The Company has set the target to follow the best practice and to improve diversity within the workplace
as well as to keep at least 33% ratio between the number of men and women among Directors by the end
of 2025.
Financial committee
It is composed of council members (a general manager, an independent director and a chief operating
officer of the Company) and advisory members from the Company’s employees. It has a task of supporting
the assessment and decisions of the Board of Directors relating to the potential financial transaction of the
Company. In particular:
- adopting a standardised process to analyse potential financial portfolio transactions of the
Company;
- verifying the prior availability of transfer price and credit risk assessments concerning all lending
transactions;
- assessing the economic benefit and the consistency of main lending and funding transactions with
the Company's policies and arm's length principles;
- performing an analysis of the main financial risks involved in financial transactions, such as interest
rate, exchange rate, liquidity risk;
- verifying the debt capacity analysis of any new lending operations, considering cash flow
sustainability and financial and economic projections of the borrowers;
- evaluating potential accounting, tax and legal implications of the financial transactions
The Company’s control system
The appropriateness of the administrative and accounting procedures used in the preparation of the
financial statements has been verified in the assessment of the internal control system for financial
reporting. The assessment of the internal control system for financial reporting did not identify any material
issues.
16
On 16 December 2016 the Company adopted the new Enel Global Compliance Program (“EGCP”), addressed
to the foreign subsidiaries of the Enel Group. The aim of EGCP is to reinforce the commitment of the
Company to the highest ethical, legal and professional standards for enhancing and preserving the
reputation as well as the prevention of criminal behaviour abroad, which may lead to a corporate criminal
liability to the Company.
Corporate ethics
All activities of the Enel Group are performed by adhering to a robust system of ethics. The system is based
on specific compliance programs, including among others: the Code of Ethics, the Enel Global Compliance
Program, the “Zero-Tolerance-of-Corruption” Plan, the Human Rights Policy.
More information can be obtained from the investor relations section of Enel S.p.A. official website
https://www.enel.com/investors/governance/internal-controls
The Company voluntary follows above mentioned programs adopted by the Enel Group, confirming the
commitment to ensure propriety and transparency in conducting company business and operations and to
safeguard our image and positioning, the work of our employees, the expectations of shareholders and all
of the Enel Group’s stakeholders.
The awareness on topics included in the system of ethics is created though the internal learning platform.
Events after the reporting period
12 billion euro committed revolving credit facility
On 19 February 2025 the Company jointly with its parent company Enel S.p.A. signed a committed,
revolving, sustainability-linked credit facility for an amount of 12 billion euros and a maturity of five years.
The Facility is linked to the KPI of “Percentage of CAPEX aligned with the EU taxonomy” in addition to the
achievement of a Sustainability Performance Target (“SPT”) equal to or greater than 80% as of
31 December 2026 for the 2024-2026 period.
This Facility replaces the previous credit line that had been signed in March 2021, and subsequently
amended, with an overall value of 13.5 billion euros.
A triple-tranche 2,000 million-euro Sustainability-Linked Bond
On 17 February 2025 the Company launched a multi-tranche “Sustainability-Linked bond” for institutional
investors in the Eurobond market for a total of 2,000 million euros.
The issue is structured in the following three tranches:
- 750 million euros at a fixed rate of 2.625%, with issuance date set on 24 February 2025, maturing
24 February 2028:
• the issue price has been set at 99.574% and the effective yield at maturity is equal to 2.775%;
• the interest rate will remain unchanged to maturity, subject to the achievement by the Enel Group
of the following Sustainability Performance Targets (“SPTs”). In particular:
o for the KPI related to the “Proportion of CAPEX aligned to the EU Taxonomy (%)”, the achievement
of a SPT equal to or higher than 80% on 31 December 2025 for the 2023-2025 period;
o for the KPI related to the “Scope 1 GHG emissions Intensity relating to Power Generation
(gCO
2eq
/kWh)”, the achievement of a SPT equal to or less than 130gCO
2eq
/kWh on
31 December 2025;
17
• if one or both of the above mentioned SPTs are not achieved, a step-up mechanism will be applied,
increasing the rate by 25 bps, as of the first interest period subsequent to the publication of the
relevant assurance report issued by an external verifier;
- 750 million euros at a fixed rate of 3.000%, with issuance date set on 24 February 2025, maturing
24 February 2031:
• the issue price has been set at 99.229% and the effective yield at maturity is equal to 3.143%;
• the interest rate will remain unchanged to maturity, subject to the achievement by the Enel Group
of the following SPTs. In particular:
o for the KPI related to the “Proportion of CAPEX aligned to the EU Taxonomy (%)”, the achievement
of a SPT equal to or higher than 80% on 31 December 2027 for the 2025-2027 period;
o for the KPI related to the “Scope 1 GHG emissions Intensity relating to Power Generation
(gCO
2eq
/kWh)”, the achievement of a SPT equal to or less than 115gCO
2eq
/kWh on
31 December 2027;
• if one or both of the above mentioned SPTs are not achieved, a step-up mechanism will be applied,
increasing the rate by 25 bps, as of the first interest period subsequent to the publication of the
relevant assurance report issued by an external verifier.
- 500 million euros at a fixed rate of 3.500%, with issuance date set on 24 February 2025, maturing
24 February 2036:
• the issue price has been set at 99.123% and the effective yield at maturity is equal to 3.598%;
• the interest rate will remain unchanged to maturity, subject to the achievement by the Enel Group
of the following SPTs. In particular:
o for the KPI related to the “Scope 1 GHG emissions Intensity relating to Power Generation
(gCO
2eq
/kWh)”, the achievement of a SPT equal to or less than 72gCO
2eq
/kWh on
31 December 2030;
o or the KPI related to the “Renewable Installed Capacity Percentage (%)”, the achievement of a
SPT equal to or higher than 80% on 31 December 2030;
• if one or both of the above mentioned SPTs are not achieved, a step-up mechanism will be applied,
increasing the rate by 25 bps, as of the first interest period subsequent to the publication of the
relevant assurance report issued by an external verifier.
The issue, which has an average duration of approximately 6 years, has an average coupon of 3%.
Reporting of non-financial information
Enel Group, in the implementation of the new EU (Directive 2014/97/EU) and national legislation that has
been introduced as mandatory of non-financial information from 2024 financial year for large public-interest
entities, has drafted a “Consolidated Non-Financial Statement” that covers the areas provided for in that
decree, accompanying the Group’s Annual Report.
Report can be obtained from the investor relations section of Enel S.p.A. official website
(http://www.enel.com).
Personnel
At 31 December 2024 the Company had, other than the directors, nine employees and one seconded
personnel (eight employees and two seconded personnel at 31 December 2023).
In 2024 average headcount comprised nine people (nine people for 2023). All people worked in the
Netherlands.
18
Statement of the Board of Directors
Statement ex Article 5:25c Paragraph 2 sub c Financial Markets Supervision Act (“Wet op het Financieel
Toezicht”).
To our knowledge,
- the financial statements give a true and fair view of the assets, liabilities, financial position and
result of Enel Finance International N.V.;
- the Director’s Report gives a true and fair view of the Company’s position as per 31 December 2024
and the developments during the financial year 2024;
- the Director’s Report describes the principal risks the Company is facing.
This annual report is prepared according to International Financial Reporting Standards as adopted by the
European Union (“IFRS-EU”) and its financial statement is audited by KPMG Accountants N.V. The company
complies with the conditions of article 3:2 Wft and therefore makes use of the group financing company
exemption”
Furthermore this annual report complies with the EU Transparency Directive enacted in the Netherlands in
2008 and subsequently came into force as from 1 January 2009. The Company has to comply with this
transparency Directive, since the nominal value for certain bonds is lower than EUR 100.000. The
Company’s main obligations under the aforementioned Transparency Directive can be summarized as
follows:
- filing its approved annual financial statements electronically with the AFM (Autoriteit Financiele
Markten) in the Netherlands within five days after their approval;
- making its annual financial report generally available to the public by posting it on Enel S.p.A.
official website within 4 months after the end of the 2024 fiscal year (by 30 April 2025);
- making its annual financial report generally available to the public by issuing an information notice
on a financial newspaper or on a financial system at European level within 4 months after the end
of the 2024 fiscal year (by 30 April 2025).
Amsterdam, 23 April 2025
A. Canta
E. Di Giacomo
H. Marseille
W. Parente (from 1 December 2024)
L.B. Van der Heijden
Financial statements
for the year ended 31 December 2024
prepared in accordance with International
Financial Reporting Standards as endorsed
by the European Union
20
Statement of profit or loss and other comprehensive
income
Millions of euro
Notes
2024
2023
Interest income
Interest income
1
2,044
2,015
Interest income from derivatives
1
294
269
(Subtotal)
2,338
2,284
Interest expenses
Interest expenses
1
1,758
1,597
Interest expense from derivatives
1
110
176
(Subtotal)
1,868
1,773
Net interest income/ (expense)
470
511
Other operating expense
2
4
5
Financial income
Financial income from derivatives
3
1,584
278
Other financial income
3
195
657
(Subtotal)
1,779
935
Financial expense
Financial expense from derivative
3
437
686
Other financial expense
3
1,342
265
(Subtotal)
1,779
951
Net financial income/ (expense)
-
(16)
Income/(Loss) before taxes
466
490
Income Taxes
4
131
140
Net income/(loss) for the year (attributable to the shareholders)
335
350
Other components of comprehensive income recyclable to profit or loss in
future periods:
- effective portion of change in fair value of cash flow hedges net of deferred taxes
17
(765)
(457)
- Change in the fair value of hedging costs net of deferred taxes
17
200
34
(Subtotal)
(565)
(423)
Total comprehensive income/(loss) for the period (attributable to the
shareholders)
(230)
(73)
21
Statement of financial position
Millions of euro
Notes
ASSETS
at Dec. 31,
2024
at Dec. 31,
2023
Non-current assets
Deferred tax assets
5
568
407
Long-term loans and financial receivables
6
39,506
41,378
Derivatives
7
1,170
845
Other non-current financial assets
8
30
33
(Subtotal)
41,274
42,663
Current assets
Current portion of long-term loans and financial receivables
6
1,979
4,235
Short-term loans and financial receivables
9
7,080
8,018
Derivatives
7
32
55
Other current financial assets
10
1,281
1,337
Cash and cash equivalents
11
1
3
(Subtotal)
10,373
13,648
TOTAL ASSETS
51,647
56,311
LIABILITIES AND SHAREHOLDERS’ EQUITY
Share capital
12
1,479
1,479
Share premium reserve
12
4,826
9,126
Hedging reserve
12
(1,510)
(745)
Hedging costs reserve
12
194
(6)
Retained earnings
12
359
9
Net income for the period
12
335
350
Total shareholder's equity
5,683
10,213
Non-current liabilities
Long-term borrowings
13
36,342
36,281
Derivatives
7
1,244
1,405
Other non-current financial liabilities
146
137
(Subtotal)
37,732
37,823
Current liabilities
Income tax payable
116
82
Current portion of long-term borrowings
13
4,912
4,925
Short-term borrowings
14
2,635
2,762
Derivatives
7
118
76
Other current financial liabilities
15
449
429
Other current liabilities
2
1
(Subtotal)
8,232
8,275
TOTAL EQUITY AND LIABILITIES
51,647
56,311
22
Statement of changes in equity
Millions of euro
Notes
Share
capital
Share
premium
reserve
Hedging
reserve
Hedging
costs
reserve
Retained
earnings
Net
income
for the
period
Equity
attributable
to the
shareholders
At January 1, 2023
1,479
9,126
(288)
(40)
(35)
44
10,286
Allocation of net income from the
previous year
-
-
-
-
44
(44)
-
Comprehensive income for the year:
-
-
(457)
34
-
350
(73)
of which:
- other comprehensive income (loss) for
the period
-
-
(457)
34
-
-
(423)
- net income for period
-
-
-
350
350
At December 31, 2023
1,479
9,126
(745)
(6)
9
350
10,213
Allocation of net income from the
previous year
-
-
-
-
350
(350)
Share premium repayment
12
-
(4,300)
-
-
(4,300)
Comprehensive income for the year:
-
-
(765)
200
-
335
(230)
of which:
- other comprehensive income (loss) for
the period
12
-
-
(765)
200
-
-
(565)
- net income for period
12
-
-
-
-
-
335
335
At December 31, 2024
1,479
4,826
(1,510)
194
359
335
5,683
23
Statement of cash flows
Millions of euro
Note
2024
2023
Income for the period
335
350
Adjustments for:
(Un)realised (gain)/ losses
272
166
Expected credit loss
3
(11)
3
Income taxes
4
131
140
(Gains)/Losses and other non-monetary items
-
-
Changes in:
'- accrued interest income
55
69*
'- accrued interest expenses
23
27
'- derivatives covering interest rate risk
(3)
(5)
'- other assets
4
(25)
Net changes in all other operational assets and liabilities
79
86
Income taxes paid
(54)
Cash flows from operating activities (a)
752
725*
Financial service agreement with Enel S.p.A.
524
5,495*
Loans granted to Group and associate companies
(1,636)
(3,780)*
Loans repaid by Group and associate companies
6,263
3,161*
Derivatives covering exchange rate risks - loans and RFAs
(163)
(22)
Cash flows from investing/disinvesting activities (b)
4,988
4,854
Financial debt (new borrowings)
13,14
3,582
1,465
Financial debt (repayments and other changes)
13,14
(5,276)
(6,127)
Derivatives covering exchange rate risks - bonds
41
-
Loans due to Group and associate companies
23
(105)
Share premium repayment
12
(4,300)
Other financing
188
(985)
Cash flows from financing activities (c)
(5,742)
(5,752)
Impact of exchange rate fluctuations on cash and cash equivalent (d)
-
(1)
Increase/(Decrease) in cash and cash equivalents (a+b+c+d)
(2)
(174)
Cash and cash equivalents at the beginning of the year
11
3
177
Cash and cash equivalents at the end of the year
11
1
3
*Comparative amounts for 2023 have been changed for presentation purpose only
24
Notes to the financial statements
Form and content of the financial statement
Enel Finance International N.V. (“the Company”) is incorporated as a limited liability company under the
laws of the Netherlands on 26 September 2008. The Company is registered with the trade register of the
Dutch chamber of commerce under number 34313428 with business address at Herengracht 469, 1017 BS
Amsterdam, the Netherlands. The Company is established for an indefinite duration.
Enel Finance International N.V. (“the Company”) is a public company with limited liability, where 74.99%
of the shares are held by Enel Holding Finance S.r.l (direct parent) and 25.01% of the shares are held by
Enel S.p.A., both companies, have their seats in Rome, Italy. 100% of shares of Enel Holding Finance S.r.l.
are held by Enel S.p.A.
Therefore, Enel S.p.A. is the ultimate controlling shareholder of the Company.
Company’s financial statements are included into the consolidated financial statements of Enel S.p.A., which
can be obtained from the investor relations section of Enel S.p.A. official website (http://www.enel.com).
Corporate purpose
The Company operates as a financing company for the Group, raising funds through bond issuances, loans
and other facilities and on turn, lending the funds so raised to the companies belonging to the Enel Group.
The Company is also part of the centralised financial process and acts as the primary reference for the
management of financial needs or liquidity generated by the Enel Group companies.
The Company acts solely as a financing company for the Enel Group and therefore is not engaged in market
competition in the energy sector with third parties.
The Company is managed by a Board of Directors composed of five members, appointed by the general
meeting of shareholders, which may dismiss them at any time. The management board has the power to
perform all acts of administration and disposition in compliance with the corporate objects of the Company.
The joint signatures of any two members of the management board or the single signature of any person
to whom such signatory shall have been appointed by the management board may bind the Company.
Compliance with IFRS/IAS
The financial statements for the year ended 31 December 2024 have been prepared in accordance with
international accounting standards (International Accounting Standards – IAS and International Financial
Reporting Standards – IFRS) issued by International Accounting Standards Board (IASB), the
interpretations of the International Financial Reporting Interpretations Committee (IFRIC) and the Standing
Interpretations Committee (SIC), endorsed by the European Union pursuant to Regulation (EC) no.
1606/2002 and in effect as of the close of the year. All of these standards and interpretations are hereinafter
referred to as the “IFRS-EU”. The financial statements have also been prepared in conformity with the
statutory provisions of the Netherlands Civil Code, Book 2, Title 9 and specifically Section 2:362(9).
The financial statements were approved by the Board of Directors and authorised for issue effective on 27
February 2025, with an update on the final version as per 23 April 2025.
Basis of presentation
The financial statements consist of the statement of profit and loss and comprehensive income, the
statement of financial position, the statement of changes in equity, the statement of cash flows, and the
related notes.
25
The assets and liabilities reported in the financial position are classified on a “current/non-current basis”.
Current assets, which include cash and cash equivalents, are assets that are intended to be used during
the normal operating cycle of the Company or in the twelve months following the balance-sheet date;
current liabilities are liabilities that are expected to be settled during the normal operating cycle of the
Company or within the twelve months following the close of the financial year.
The income statement is classified on the basis of the nature of expenses, while the indirect method is used
for the cash flow statement.
Financial assets and liabilities are offset and the net amount presented in the statement of financial position
when, and only when, the Company has a legal right to offset the amounts and intends either to settle on
a net basis or to realize the asset and settle the liability simultaneously.
Functional and presentation currency
The financial statements are presented in euro, the functional currency of Enel Finance International N.V.
All figures are shown in millions of euro unless stated otherwise.
The accounting policies set out below have been applied consistently to all periods presented in these
financial statements.
Going Concern
The financial statements have been prepared on a going concern basis using the cost method, with the
exception of items measured at fair value in accordance with IFRS-EU.
Enel S.p.A. would provide financial support to the Company should it not be able to meet its obligations.
In relation to this, this annual commitment has been formally confirmed by Enel S.p.A. in a support letter
issued on 8 January 2025 and valid until next year’s approval date of the Financial Statements, should the
company remain under control of the Enel Group.
Based upon the assessment of management, supported by the fact that Enel S.p.A. is the guarantor of the
bonds and the ECPs, management has not identified any going concern triggers and therefore has prepared
these financial statements on a going concern basis.
Solvency
Given the objectives of the company, the Company is strictly economically interrelated with Enel S.p.A. In
assessing the solvency as well as the general risk profile of the Company, the solvency of the Enel Group
as a whole, headed by Enel S.p.A. should be considered.
26
Accounting policies and measurement criteria
Use of estimates and management judgments
Preparing the financial statements under IFRS-EU requires the use of estimates and assumptions that affect
the carrying amount of assets and liabilities and the related information on the items involved, as well as
the disclosure required for contingent assets and liabilities at the balance sheet date. The estimates and
the related assumptions are based on previous experience and other factors considered reasonable in the
circumstances. They are formulated when the carrying amount of assets and liabilities is not easily
determined from other sources. The actual results may therefore differ from these estimates. The estimates
and assumptions are periodically revised and the effects of any changes are reflected in the income
statement if they only involve that period. If the revision involves both the current and future periods, the
change is recognized in the period in which the revision is made and in the related future periods
Expected credit losses on financial assets
Loss allowances for financial assets are based on assumptions about risk of default and on the measurement
of expected credit losses. Management uses judgement in making these assumptions and selecting the
inputs for the impairment calculation, based on the Company’s past history, existing market conditions as
well as forward looking estimates at the end of each reporting period.
Determining the fair value of financial instruments
Fair value of financial instruments is determined on the basis of prices directly observable in the market,
where available, or, for unlisted financial instruments, using specific valuation techniques (mainly based on
present value) that maximise the use of observable market inputs. In the rare circumstances were this is
not possible, the inputs are estimated by management considering the characteristics of the instruments
being measured.
Recovery of deferred tax assets
The financial statements report deferred tax assets in respect of income components whose deductibility is
deferred in an amount whose recovery is considered by management to be highly probable.
The recoverability of such assets is subject to the achievement of future profits sufficient to absorb such
tax losses and to use the benefits of the other deferred tax assets.
Significant management judgement is required to determine the amount of deferred tax assets that can be
recognised, based upon the likely timing and the level of future taxable profits together with future tax
planning strategies and the tax rates applicable at the date of reversal.
Classification and measurement of financial assets
At initial recognition, in order to classify financial assets as financial assets at amortised cost, at fair value
through other comprehensive income and at fair value through profit or loss, management assesses both
the contractual cash flows characteristics of the instrument and the business model for managing financial
assets in order to generate cash flows.
For the purpose to evaluate the contractual cash flows characteristics of the instrument, management
performs the “SPPI test” at an instrument level, in order to define if it gives rise to cash flows that are solely
payments of principal and interest on the principal amount outstanding, performing specific assessment on the
contractual clauses of the financial instruments, as well as quantitative analysis, if required.
The business model determines whether cash flows will result from collecting contractual cash flows, selling
the financial assets, or both.
27
Hedge Accounting
Hedge accounting is applied to derivatives in order to reflect into the financial statements the effect of risk
management strategies.
At such regard, the Company documents at the inception of the transaction the hedge relationship between
hedging instruments and hedged items, as well as its risk management objectives and strategy. The
Company also assesses, both at hedge inception and on an ongoing basis, whether hedging instruments
are highly effective in offsetting changes in fair values or cash flows of hedged items.
Based on management judgement, the effectiveness assessment based on the existence of an economic
relationship between the hedging instruments and the hedged items, on the dominance of credit risk on
the value changes and on the hedge ratio, as well as the measurement of the ineffectiveness, is evaluated
through a qualitative assessment and/or a quantitative computation, depending on the specific facts and
circumstances and on the characteristics of the hedged items and the hedging instruments.
For cash flow hedges of forecast transactions designated as hedged items, management assesses and
documents to what extend they are highly probable and present an exposure to changes in cash flows that
affect profit or loss.
Moreover, during the year, the Company has carefully monitored the effect of uncertainties related to the
Covid-19 pandemic on its hedge accounting relationships.
Uncertainty over income tax treatments
The Company determines whether to consider each uncertain income tax treatment separately or together
with one or more other uncertain tax treatments as well as whether to reflect the effect of uncertainty by
using the most likely amount or the expected value method, depending on which approach the Company
expects to better predicts the resolution of the uncertainty for each uncertain tax treatments, taking
account of local tax regulations.
The Company applies judgment in identifying uncertainties over income tax treatments and reassesses any
judgments and estimates made if a change in facts and circumstances might change a conclusions about
the acceptability of a tax treatment or the estimate of the effect of uncertainty, or both.
Material accounting policies
Related parties
Related parties are mainly parties that have the same parent entity as Enel Finance International N.V.,
companies that directly or indirectly through one or more intermediaries control, are controlled or are
subject to the joint control of the Company. In addition, statutory directors, other key management of the
Company or the ultimate parent company and close relatives are regarded as related parties.
All transactions with related parties were carried out on normal market terms and conditions.
Translation of foreign currencies
Transactions in currencies other than the functional currency are recognized in these financial statements
at the exchange rate prevailing on the date of the transaction.
Monetary assets and liabilities denominated in a foreign currency other than the functional currency are
later adjusted using the balance sheet exchange rate.
Any exchange rate differences are recognized in profit or loss.
28
Fair value measurement
For all fair value measurements and disclosures of fair value, that are either required or permitted by
international accounting standards, the Company applies IFRS 13.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability, in an
orderly transaction, between market participants, at the measurement date (i.e. an exit price).
The fair value measurement assumes that the transaction to sell an asset or transfer a liability takes place
in the principal market, i.e. the market with the greatest volume and level of activity for the asset or
liability. In the absence of a principal market, it is assumed that the transaction takes place in the most
advantageous market to which the entity has access, i.e. the market that maximizes the amount that would
be received to sell the asset or minimizes the amount that would be paid to transfer the liability.
The fair value of an asset or a liability is measured using the assumptions that market participants would
use when pricing the asset or liability, assuming that market participants act in their economic best interest.
Market participants are independent, knowledgeable sellers and buyers who are able to enter into a
transaction for the asset or the liability and who are motivated but not forced or otherwise compelled to do
so.
When measuring fair value an entity shall take into account the characteristics of the asset or liability, in
particular:
> for a non-financial asset, a fair value measurement takes into account a market participant’s ability
to generate economic benefits by using the asset in its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use;
> for liabilities and own equity instruments, the fair value reflects the effect of non-performance risk,
i.e the risk that an entity will not fulfill an obligation, including but not limited to the entity’s own credit
risks;
> in the case of groups of financial assets and financial liabilities with offsetting positions in market
risk or counterparty credit risk, managed on the basis of an entity’s net exposure to such risks, it is
permitted to measure fair value on a net basis.
In measuring fair value of assets and liabilities, the Group uses valuation techniques that are appropriate
in the circumstances and for which sufficient data are available, maximizing the use of relevant observable
inputs and minimizing the use of unobservable inputs.
Financial instruments
Financial instruments are any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity; they are recognised and measured in accordance with IAS
32 and IFRS 9.
A financial asset or liability is recognised in the financial statements when, and only when, the Company
becomes party to the contractual provision of the instrument (trade date).
Conversely, the Company initially measures financial assets other than trade receivables at their fair value
plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.
Financial assets are classified, at initial recognition, as financial assets at amortised cost, at fair value
through other comprehensive income and at fair value through profit or loss, on the basis of both
Company’s business model and the contractual cash flows characteristics of the instrument.
29
For this purposes, the assessment in order to define if the instrument gives rise to cash flows that are
solely payments of principal and interest (SPPI) on the principal amount outstanding, is referred to as the
SPPI test and is performed at an instrument level.
The Company’s business model for managing financial assets refers to how it manages its financial assets
in order to generate cash flows. The business model determines whether cash flows will result from
collecting contractual cash flows, selling the financial assets, or both.
For purposes of subsequent measurement, financial assets are classified in four categories:
- financial assets at amortised cost (debt instruments);
- financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments);
- financial assets designated at fair value through OCI with no recycling of cumulative gains and losses
upon derecognition (equity instruments); and
- financial assets at fair value through profit or loss.
Financial assets measured at amortised cost
This category mainly includes trade receivables, other receivables and financial receivables.
Financial assets at amortised cost are held within a business model whose objective is to hold financial
assets in order to collect contractual cash flows and whose contractual terms give rise, on specified dates,
to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Such assets are initially recognised at fair value, adjusted for any transaction costs, and subsequently
measured at amortised cost using the effective interest method and are subject to impairment.
Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.
Impairment of financial assets
At the end of each reporting date, the Company recognizes a loss allowance for expected credit losses on
trade receivables and other financial assets measured at amortised cost and all other assets in the scope
of IFRS 9 expected credit loss model.
The Company impairment model is based on the determination of expected credit losses (ECL) using a
forward- looking approach. In essence, the model provides for:
- the recognition of expected credit losses on an ongoing basis and the updating of the amount of such
losses at the end of each reporting period, reflecting changes in the credit risk of the financial
instrument;
- the measurement of expected losses on the basis of reasonable information, obtainable without undue
cost, about past events, current conditions and forecasts of future conditions.
For all financial assets, other than trade receivables, the Company applies the general approach under IFRS
9, based on the assessment of a significant increase in credit risk since initial recognition. Under such
approach, loss allowance on financial assets is recognized at an amount equal to the lifetime expected
credit losses, if the credit risk on those financial assets has increased significantly, since initial recognition,
considering all reasonable and supportable information, including also forward-looking inputs.
If at the reporting date, the credit risk on financial assets has not increased significantly since initial
recognition, the Company measures the loss allowance for those financial assets at an amount equal to 12-
month expected credit losses.
30
For financial assets on which loss allowance equals to lifetime expected credit losses has been recognized
in the previous reporting date, the Company measures the loss allowance at an amount equal to 12-month
expected credit losses when significant increase in credit risk condition is no longer met.
The Company recognizes in profit or loss, as impairment gain or loss, the amount of expected credit losses
(or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is
required to be recognized in accordance with IFRS 9.
The loss allowances for financial assets are based on assumptions about risk of default and expected credit
losses. The Company uses judgement in making these assumptions and selecting the inputs for the
impairment calculation, based on the Company’s past history, existing market conditions as well as forward
looking estimates at the end of each reporting period.
Cash and cash equivalents
This category includes deposits that are available on demand or at very short term, as well as highly short-
term liquid financial investments that are readily convertible into a known amount of cash and which are
subject to insignificant risk of changes in value.
Financial liabilities at amortised cost
This category mainly includes borrowings, trade payable and debt instruments.
Financial liabilities, other than derivatives, are recognised when the Company becomes a party to the
contractual clauses of the instrument and are initially measured at fair value adjusted for directly
attributable transaction costs. Financial liabilities are subsequently measured at amortised cost using the
effective interest rate method.
Derecognition of financial assets and liabilities
Financial assets are derecognised whenever one of the following conditions is met:
- the contractual right to receive the cash flows associated with the asset expires;
- the Company has transferred substantially all the risks and rewards associated with the asset,
transferring its rights to receive the cash flows of the asset or assuming a contractual obligation to pay
such cash flows to one or more beneficiaries under a contract that meets the requirements provided by
IFRS 9 (the “pass through test”);
- the Company has not transferred or retained substantially all the risks and rewards associated with the
asset but has transferred control over the asset.
Financial liabilities are derecognised when they are extinguished, i.e. when the contractual obligation has
been discharged, cancelled or expired.
When an existing financial asset or liability is replaced by another from the same borrower or lender on
substantially different terms, or the terms of an existing asset or liability are substantially modified, such
an exchange or modification is treated as the derecognition of the original asset or liability and the
recognition of a new asset or liability. The difference in the respective carrying amounts is recognised in
profit or loss.
Derivative financial instruments
A derivative is a financial instrument or another contract:
31
- whose value changes in response to the changes in an underlying variable such as an interest rate,
commodity or security price, foreign exchange rate, a price or rate index, a receivable rating or other
variable;
- that requires no initial net investment, or one that is smaller than would be required for a contract with
similar response to changes in market factors;
- that is settled at a future date.
Derivative instruments are classified as financial assets or liabilities depending on the positive or negative
fair value and they are classified as “held for trading” within “Other business model” and measured at fair
value through profit or loss, except for those designated as effective hedging instruments.
For more details about hedge accounting, please refer to the note 17 “Derivatives and hedge accounting”.
All derivatives held for trading, are classified as current assets or liabilities.
Derivatives not held for trading purposes, but measured at fair value through profit or loss since they are
not designed as hedge instruments for hedge accounting and derivative designated as effective hedging
instruments are classified as current or not current on the basis of their maturity date and the Group
intention to hold the financial instrument till maturity or not.
Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary
shares and share options are recognized as a deduction from equity, net of any tax effects.
Reference is made to note 12 for the other relevant elements of equity.
Interest income and expense
Interest income and expense is recognized on an accruals basis in line with interest accrued on the net
carrying amount of the related financial assets and liabilities using the effective interest method.
Interest income is recognised to the extent that it is probable that the economic benefits will flow to the
Company and the amount can be reliably measured.
Other interest income and expense
Other interest income and expense primarily includes gain/loss on the disposal of financial assets/ liabilities
that are not an output of the Company’s ordinary activity.
Financial income and expense
Financial income and expense from derivatives include:
- income and expense from derivatives measured at fair value through profit or loss;
- income and expense from fair value hedge derivatives;
- income and expense from cash flow hedge derivatives on interest rate and foreign exchange risks.
Financial income and expense include also changes in the fair value of financial instruments other than
derivatives.
Dividends
Dividends and interim dividends payable to the Company’s shareholders are recognized as changes in
equity at the date they are approved by the Shareholders’ Meeting and the Board of Directors, respectively.
Income taxes
Income tax expense comprises current and deferred tax.
32
Corporate income tax is calculated on the basis of the profit before taxation shown in the Statement of
profit and loss and comprehensive income, taking into account tax allowances and tax adjustments. As of
1 January 2015, the Company forms part of a fiscal unity with Enel Investment Holding B.V, whereby the
Company is the head of the fiscal unity. From 1 January 2020 till 31 December 2023 Enel Insurance N.V.
was a part of the fiscal unity.
The Company is jointly and severally liable for all corporate income tax liabilities of the fiscal unity. Taxation
for entities within the fiscal unity is calculated on a stand-alone basis.
Current tax and deferred tax are recognised in profit or loss except to the extent that it relates to a business
combination, or items recognised directly in equity or in other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax
rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect
of previous years. Current tax payable also includes any tax liability arising from the declaration of
dividends.
Deferred tax liabilities and assets are calculated on the temporary differences between the carrying
amounts of assets and liabilities in the financial statements and their corresponding values recognized for
tax purposes on the basis of tax rates in effect on the date the temporary difference will reverse, which is
determined on the basis of tax rates that are in force or substantively in force at the balance sheet date.
Deferred tax assets are recognized when recovery is probable, i.e. when an entity expects to have sufficient
future taxable income to recover the asset.
The recoverability of deferred tax assets is reviewed at each year-end. Taxes in respect of components
recognized directly in equity are taken directly to equity.
The Company has assessed the expected impact of the Pillar II - global minimum top-up tax and notes that
the financial statements are not impacted due to the local effective tax rate that is higher than 15 percent
and the entity has not paid any Pillar II top-up tax on behalf of other entities in the Enel Group. Also, no
Pillar II top-up tax has been recharged to the entity.
Recently issued accounting standards and Standards issued but not yet effective
New accounting standards applied in 2024
The Company has applied the following new standards, interpretation and amendments that took effect as
from January 1, 2024:
> “Amendments to IAS 7 – Statement of cash flows and IFRS 7 – Financial Instruments Disclosures:
Supplier Finance Arrangements”, issued in May 2023, that clarify the characteristics of the Supplier Finance
Arrangements (SFAs) and require to provide additional disclosures, in order to assist users of the financial
statements in understanding their related impacts on liabilities, cash flows and exposure to liquidity risk.
The Amendments clarify that these agreements provide the extension of payment terms for the debtor or
with early payment terms for its suppliers, compared to the original payment due dates. The amendments
to IAS 7 provide a list of disclosures required in aggregate for SFAs with similar characteristics.
Regarding IFRS 7, the amendments add the SFAs among the non-exhaustive list of factors that should be
considered when providing disclosure about the management of the liquidity risk and include SFAs as a
possible cause of concentration of liquidity risk.
The IASB has provided transitional relief, by not requiring comparative information and disclosure of
specified opening balances in the first year of application.
The application of these amendments did not have material impact in the financial statements.
33
> “Amendments to IAS 1 - Classification of Liabilities as Current or Non-current”, issued in January 2020,
that affect the requirements in IAS 1 for the presentation of financial liabilities.
The amendments remove the requirement for a right to be unconditional clarifying, more in detail:
- the criteria for classifying a liability as current or non-current, specifying what is meant by a right
to defer settlement and that this right must exist at the end of the reporting period;
- that classification is unaffected by management’s intentions or expectations about whether the
right to defer settlement of a liability will be exercised or not;
- that a right to defer exists only if the conditions specified in the loan agreement at the end of the
reporting period are met, even if the lender does not test compliance with such conditions until a
later date; and
- that settlement refers to the transfer to the counterparty of cash, equity instruments, other goods
or services. At such regards, terms of a liability that could, at the option of the counterparty, result
in its settlement by the transfer of own equity instruments (e.g., conversion options) do not affect
its classification as current or non-current if, applying IAS 32, the option is classified as an equity
instrument recognized separately from the liability.
The application of these amendments did not have material impact in the financial statements.
> “Amendments to IAS 1 - Non-current Liabilities with Covenants”, issued in October 2022, aimed to:
- clarify that covenants to comply with on or before the end of the reporting period affect the
classification of a liability as current or non-current; and
- improve the information to be provided when the right to defer settlement of a liability for at least
12 months is subject to compliance with covenants. In particular, the amendments require
disclosure to help users understand the risk that those liabilities could become repayable within 12
months after the reporting period, such as: (i) information about the covenants (the nature of the
covenants and the date when is required to comply with them) and the carrying amount of related
liabilities (ii) facts and circumstances, if any, that indicate difficulty to be complying with the
covenants.
The application of these amendments did not have material impact in the financial statements.
“Amendments to IFRS 16-Lease Liability in a Sale and Leaseback”, issued in September 2022, specify
the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback
transaction, to ensure the seller-lessee does not recognize any amount of the gain or loss that relates to
the right of use it retains.
In particular, in sale and leaseback transactions IFRS 16 requires the seller-lessee to measure the right of-
use asset at the proportion of the previous carrying amount of the asset that relates to the right of use the
seller-lessee retains and, accordingly, recognize only the amount of any gain or loss that relates to the
rights transferred to the buyer-lessor.
Furthermore, the amendments apply to sale and leaseback transactions where the lease payments include
variable payments that do not depend on an index or a rate.
The application of these amendments did not have material impact in the financial statements.
Standards issued but not yet effective
Below is a list of accounting standards, amendments and interpretations that will be effective for the
Company after 31 December 2024:
IFRS 18, ‘Presentation and Disclosure in Financial Statements’, issued in April 2024. The new
standard, on presentation and disclosures in financial statements, will replace IAS 1 Presentation of
financial statements, introducing new requirements to provide more relevant information and transparency
34
to users, with a focus on updates to the statement of profit or loss. More in details, the key concepts
introduced by IFRS 18 relate to:
− structure of the statement of profit or loss, requiring defined subtotals;
− requirement to determine the most useful structure summary for presenting expenses in the statement
of profit or loss;
− required disclosures in a single note within the financial statements for management-defined
performance measures related to subtotals of income and expenses that are used in public
communications reported outside the financial statements; and
− enhanced principles on aggregation and disaggregation of information.
The standard shall be applied, subject to endorsement, to annual reporting periods beginning on or after 1
January 2027. Retrospective application is required.
“IFRS 19 Subsidiaries without Public Accountability: Disclosures”, issued in May 2024. The new,
voluntary, standard works alongside other IFRS Accounting Standards, permitting eligible subsidiaries to
elect to apply reduced disclosure requirements.
In particular, a subsidiary is eligible if:
− it does not have public accountability; and
− it has an ultimate or intermediate parent that produces consolidated financial statements available for
public use that comply with IFRS Accounting Standards.
The standard shall be applied, subject to endorsement, to annual reporting periods beginning on or after
1 January 2027.
“Amendments to IFRS 10 and IAS 28 - Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture”, issued in September 2014. The amendments clarify the accounting treatment
for sales or contribution of assets between an investor and its associates or joint ventures. They confirm
that the accounting treatment depends on whether the non-monetary assets sold or contributed to an
associate or joint venture constitute a ‘business’ (as defined in IFRS 3). The IASB has deferred the effective
date of these amendments indefinitely.
“Amendments to IAS 21-The Effects of Changes in Foreign Exchange Rates: Lack of
Exchangeability”, issued in August 2023. The Amendments require to apply a consistent approach in
assessing whether a currency is exchangeable into another currency and, when it is not, in determine the
exchange rate to use and the disclosures to provide.
The amendments shall be applied to annual reporting periods beginning on or after 1 January 2025.
“Amendments to the Classification and Measurement of Financial Instruments”, issued in May 2024.
The amendments include new requirements to:
− clarify the date of recognition and derecognition of some financial assets and liabilities, with a new
exception for some financial liabilities settled through an electronic cash transfer system;
− clarify and add further guidance for assessing whether a financial asset meets the solely payments of
principal and interest (SPPI) criterion;
− add new disclosures for certain instruments with contractual terms that can change cashflows (such
as some financial instruments with features linked to the achievement of environment, social and
governance targets); and
35
− update the disclosures for equity instruments designated at fair value through other comprehensive
income (FVOCI).
The amendments shall be applied, subject to endorsement, to annual reporting periods beginning on or
after 1 January 2026.
Annual Improvements Volume 11, issued in July 2024. The document contains formal modifications
and clarifications of existing standards. More specifically, the following standards were amended:
− IAS 7 - Cost method; the amendment removes the term “cost method” that is no longer defined in
IFRS Accounting Standards;
− IFRS 9 - Lessee derecognition of lease liabilities; the amendment addresses a potential lack of clarity
related to how a lessee accounts for the derecognition of a lease liability, clarifying that any resulting
gain or loss shall be recognized in profit or loss;
− IFRS 9 - Transaction price; the amendment removes the reference in Appendix A of the IFRS 9 to the
definition of ‘transaction price’ in IFRS 15, considering that the term ‘transaction price’ is used in
particular paragraphs of IFRS 9 with a meaning that is not necessarily consistent with the definition of
that term in IFRS 15;
− IFRS 7 - Gain or loss on derecognition; the amendment addresses a potential confusion arising from
an obsolete reference to a paragraph that was deleted from the standard when IFRS 13 Fair Value
Measurement was issued;
− IFRS 7 - Disclosure of deferred difference between fair value and transaction price; the amendment
addresses an inconsistency between the standard and its accompanying implementation guidance that
arose when a consequential amendment resulting from the issuance of IFRS 13 was made to the
standard, but not to the corresponding paragraph in the implementation guidance;
− IFRS 7 - Introduction and credit risk disclosures; the amendment addresses a potential confusion by
clarifying how to apply the relevant Implementation Guidance and by simplifying some explanations;
− IFRS 10 - Determination of a ‘de facto agent’; the amendment clarify how an investor shall determine
whether another party is acting on its behalf;
− IFRS 1 Hedge accounting by a first-time adopter; the amendment improve the consistency between
requirements for hedge accounting in IFRS 9 and IFRS 1.
Each of the amendments shall be applicable, subject to endorsement, for annual reporting periods
beginning on or after 1 January 2026, with early application permitted.
The Company is assessing the potential impact of the future application of the new provisions.
36
Risk management
Market risk
As part of its operation as a financing company for the Enel Group, Enel Finance International N.V. is
exposed to different market risks, notably interest rate and exchange rates risks. The primary objective of
the Company is to mitigate such risks appropriately so that they do not give rise to unexpected changes in
results.
In order to mitigate this risk, the Company employs financial derivative instruments such as interest rate
swaps, currency forwards and cross currency interest rate swaps, that are negotiated both with Enel S.p.A.
and on the market.
The derivatives compliant with IFRS 9 requirements can be designated as cash flow hedge or fair value
hedge, otherwise are classified as trading.
There were no changes in the source of exposure to interest rate and exchange rate risk compared with
the previous year.
Interest rate risk
Interest rate risk is the risk born by an interest-bearing financial instrument due to variability of interest
rates. The optimal debt structure results from the trade-off between reducing the interest rate exposure
and minimizing the average cost of debt.
The Company is exposed to interest rate fluctuation on both liabilities and assets.
Interest rate swaps are stipulated to mitigate the exposure to interest rates fluctuation, thus reducing the
volatility of economic results. Through an interest rate swap, the Company agrees with a counterparty to
exchange, with a specified periodicity, floating rate interest flows versus fixed rate interest flows, both
calculated on a reference notional amount. In order to ensure effectiveness, all the contracts have notional
amount, periodicity and expiry date matching the underlying financial liability and its expected future cash
flows.
The notional amount of outstanding contracts is reported below.
Millions of euro
Notional amount
2024
2023
Interest rate derivatives:
Interest rate swap
2,097
2,189
Total
2,097
2,189
For more details, please refer to the note 16 and 17.
At 31 December 2024, 0.12% of gross long term debt towards third parties was floating rate (0.36% at 31
December 2023). Taking into account interest rate derivatives designated as cash flow hedge considered
effective pursuant to the IFRS – EU, gross long term debt is mostly fully hedged against interest rate risk.
Having both assets and liabilities indexed to floating rate indices, the sensitivity of the Company income
statement to the fluctuation of interest rates depends upon its net long term financial position, please refer
to the sensitivity table.
37
Interest rate risk sensitivity analysis
The Company performs sensitivity analysis by estimating the effects of changes in the level of interest rates
on financial instruments portfolio. In particular, sensitivity analysis measures the potential impact of market
scenarios both on equity, for the hedging component of derivatives in cash flow hedge, and on income
statement for all derivatives that do not qualify for hedge accounting and the portion of net long term
floating-rate debt not covered by derivatives. The Company’s assets and liabilities are accounted for at
amortised costs, and not impacted by changes in the level of interest rates.
These scenarios are represented by parallel translation, measured in basis points (bps) in the interest rate
yield curve at the reporting date. All other variables held constant, the Company’s income and equity before
tax is impacted as follows:
Millions of euro
Interest rate risk sensitivity analysis
2024
Pre-tax impact on
income
Pre-tax impact on
equity
Interest
Rates
scenario
increase
decrease
increase
decrease
Change in interest expense related to long term gross floating-
rate debt after hedging
25 bp
-
-
-
-
Change in interest income related to floating-rate financial
receivables after hedging
25 bp
32
(32)
-
-
Change in Fair value of Derivative financial instruments not
qualifying for hedge accounting
25 bp
-
-
-
-
Change in Fair value of Derivative Financial instruments
designated as hedging instruments
25 bp
-
-
(1)
1
Millions of euro
Interest rate risk sensitivity analysis
2023
Pre-tax impact on
income
Pre-tax impact on
equity
Interest
Rates
scenario
increase
decrease
increase
decrease
Change in interest expense related to long term gross floating-
rate debt after hedging
25 bp
-
-
-
-
Change in interest income related to floating-rate financial
receivables after hedging
25 bp
33
(33)
-
-
Change in Fair value of Derivative financial instruments not
qualifying for hedge accounting
25 bp
-
-
-
-
Change in Fair value of Derivative Financial instruments
designated as hedging instruments
25 bp
-
-
(2)
2
Currency risk
Currency risk is a type of risk that arises from the change in price of one currency against another. The
Company exposure to such risk is mainly due to foreign currencies denominated flows, originated by
financial assets and liabilities.
In order to mitigate this risk, the Company enters into plain vanilla transactions such as currency forwards
and cross currency interest rate swaps. In order to ensure effectiveness, all the contracts have notional
amount and expiry date matching the underlying expected future cash flows.
Cross currency interest rate swaps are used to transform a long-term fixed – or floating – rate liability in
foreign currency into an equivalent fixed – or floating – rate liability in euro, while currency forwards are
used to hedge commercial papers and intercompany loans.
38
Millions of euro
Notional amount
2024
2023
Foreign exchange derivatives:
Currency forwards:
898
1,502
Cross currency interest rate swaps
22,699
22,418
Total
23,597
23,920
For more details, please refer to the note 16 and 17.
Currency risk sensitivity analysis
The Company performs sensitivity analysis by estimating the effects on financial instruments portfolio of
changes in the level of exchange rates. In particular, sensitivity analysis measures the potential impact of
market scenarios both on equity, for the hedging component of cash flow hedges derivatives, and on income
statement for those derivatives that do not qualify for hedge accounting and the portion of gross long-term
foreign denominated debt not covered by derivatives.
These scenarios are represented by the 10% Euro appreciation/depreciation towards all foreign currencies
in comparison with end of year level. All other variables held constant, the carrying value of the Company’s
assets and liabilities denominated in foreign currencies are impacted following the exchange rate scenario
disclosed (10%), the Company’s income and equity before tax is impacted as follows:
Millions of euro
Foreign exchange risk sensitivity analysis
2024
Pre-tax
impact on
income
Pre-tax
impact on
equity
Exchange
Rate
Euro
Appr.
Euro
Depr.
Euro
Appr.
Euro
Depr.
scenario
Change in Fair value of Derivative financial instruments not qualifying for
hedge accounting
10%
-
-
-
-
Change in Fair value of Derivative Financial instruments designated as
hedging instruments
10%
80
(98)
-
-
Cash Flow hedge
10%
-
-
(2,038)
2,491
Fair value hedge
10%
(51)
62
-
-
Millions of euro
Foreign exchange risk sensitivity analysis
2023
Pre-tax
impact on
income
Pre-tax
impact on
equity
Exchange
Rate
Euro
Appr.
Euro
Depr.
Euro
Appr.
Euro
Depr.
scenario
Change in Fair value of Derivative financial instruments not qualifying for
hedge accounting
10%
-
-
-
-
Change in Fair value of Derivative Financial instruments designated as
hedging instruments
10%
86
(105)
-
-
Cash Flow hedge
10%
-
-
(1,989)
2,432
Fair value hedge
10%
(48)
58
-
-
39
Credit risk
The Company’s financial operations expose it to credit risk, i.e. the possibility that a deterioration in the
creditworthiness of a counterparty has an adverse impact of the expected value of the creditor position.
The exposure to credit risk is attributable to Lending and hedging transactions.
Enel Finance International N.V. is part of the centralised financial flow process and acts as the primary
reference for the management of financial needs or liquidity generated by Enel Group entities. The Company
manages its lending operations in different countries and regions to minimise the concentration of risks
and therefore mitigate financial loss through a counterparty’s potential failure to make payments.
Finally, with regard to derivative transactions, risk mitigation is pursued with a uniform system for assessing
counterparties, as well as with the adoption of specific risk mitigation clauses (e.g. netting arrangements)
and possibly the exchange of cash collateral.
The Company’s maximum exposure to credit risk for the components of the Balance Sheet at 31 December
2024 and 2023 is the carrying amounts as illustrated in Note 6, 9 and 10.
Credit risk measurement
The Expected Credit Loss (i.e. ECL), determined considering Probability of Default (PD), Loss Given Default
(LGD), and Exposure at Default (EAD), is the difference between all contractual cash flows that are due in
accordance with the contract and all cash flows that are expected to be received (i.e., all short falls)
discounted at the original EIR.
EAD is established on a quarterly basis using outstanding exposure data. PD and LGD are determined at
least annually.
Probability of Default (PD) indicates the likelihood that a counterparty will default within one-year time
horizon.
The Company defines a default to have occurred when:
• the counterparty is overdue by more than 90 days; or
• the Company considers the borrower to be unlikely to meet its contractual obligations;
• besides mandatory triggers, judgmental triggers also apply.
The PD is estimated mainly in relation to the creditworthiness of each counterparty. The Company computes
the PD as the average of the P provided by the major rating agencies (e.g. Standard & Poor’s, Moody’s) for
each credit score, updated on yearly basis. In addition, in the absence of detailed values for each rating
class of Caa range, the values of cumulative PD shown in the tables for B3 and Ca-C are interpolated using
an exponential regression. Internal methodology to assess the creditworthiness considers qualitative and
quantitative information in order to reflect possible future events and macroeconomic scenarios, which may
affect the risk of the portfolio or the financial instrument.
40
Rating
Moody's PD %
Standard&Poors PD%
PD%
Aaa/AAA
-
-
-
Aa1/AA+
-
-
-
Aa2/AA
-
0.02
0.01
Aa3/AA-
0.04
0.02
0.03
A1/A+
0.06
0.04
0.05
A2/A
0.04
0.05
0.05
A3/A-
0.06
0.05
0.06
Baa1/BBB+
0.10
0.09
0.09
Baa2/BBB
0.16
0.14
0.15
Baa3/BBB-
0.27
0.21
0.24
Ba1/BB+
0.51
0.28
0.40
Ba2/BB
0.74
0.45
0.60
Ba3/BB-
1.33
0.88
1.10
B1/B+
1.88
1.86
1.87
B2/B
2.91
2.73
2.82
B3/B-
4.52
5.33
4.93
Caa1
-
-
7.73
Caa2
-
-
12.12
Caa3
-
-
19.00
Ca-C
33.62
25.98
29.80
Exposure at Default (EAD) estimates the expected exposure at the time of a counterparty default and
contains the carrying exposure at the reporting date net of eventual cash deposits obtained as guarantees
or, in some cases, as the amortized cost
Loss Given Default (LGD) consider each specific exposure at default, date of default, guarantee and deposit
information, recovery rate (portfolio or benchmark), credit insurance and legal/post default classification
details.
The Company uses qualitative triggers to determine whether a financial instrument should be classified as
stage 1 or stage 2. The Company is monitoring the status of borrower and the instruments is transferred
from stage 1 to stage 2 if the credit risk increases and there is a significant past due. A transfer to stage 3
will always be the result of default of the financial instrument.
The following table provides information about the exposure to credit risk and ECL, measured on an
individual basis, for financial assets subject to impairment other than trade receivables and contract assets:
Millions of euro
Staging
Basis for
recognition
of expected
credit loss
provision
Weighted
average
expected
credit loss
rate
(PD*LGD)
Gross
carrying
amount
Expected
credit
loss
allowance
Net
amount
at Dec. 31,
2024
Performing
12 m ECL
0.11%
48,617
52
48,565
Underperforming
Lifetime ECL
-
-
-
-
Non-performing
Lifetime ECL
-
-
-
-
Total
48,617
52
48,565
41
Millions of euro
Staging
Basis for
recognition
of expected
credit loss
provision
Weighted
average
expected
credit loss
rate
(PD*LGD)
Gross
carrying
amount
Expected
credit
loss
allowance
Net
amount
at Dec. 31,
2023
Performing
12 m ECL
0.12%
53,694
62
53,632
Underperforming
Lifetime ECL
-
-
-
-
Non-performing
Lifetime ECL
-
-
-
-
Total
53,694
62
53,632
The table below reports the movement in expected credit loss that has been recognized for financial assets
measured at amortized cost
Millions of euro
2024
2023
Change
Expected credit loss allowance as at 1 January
62
60
2
Impairment losses recognized in profit or loss
9
23
(14)
Reversal of impairment losses in profit or loss
(20)
(20)
-
Exchange rate differences
1
(1)
2
Expected credit loss allowance as at 31 December
52
62
(10)
Liquidity risk
Liquidity risk manifests itself as uncertainty about the Company’s ability to discharge its obligations
associated with financial liabilities that are settled by delivering cash or another financial asset.
The Company manages liquidity risk by implementing measures to ensure an appropriate level of liquid
financial resources minimizing the associated opportunity cost and maintaining a balanced debt structure
in terms of its maturity profile and funding sources.
On short term, liquidity risk is mitigated by maintaining an appropriate level of unconditionally available
resources.
On long term, liquidity risk is mitigated by maintaining a balanced debt maturity profile for our debt, access
to a range of resources of funding on different markets, in different currencies and with different
counterparties.
The mitigation of liquidity risk enables the Company to maintain a credit rating that ensures access to the
capital market and limits the cost of funds, with a positive impact on its performance and financial
position.
42
The Company holds the following undrawn lines of credit and commercial papers.
Millions of euro
at Dec. 31,
2024
at Dec. 31,
2023
Expiring
within one
year
Expiring
beyond one
year
Expiring
within one
year
Expiring
beyond
one
year
Committed credit lines
1,050
3,000
-
4,050
Commercial paper
6,199
-
5,864
-
Total
7,249
3,000
5,864
4,050
Sustainability-linked revolving credit facilities in the amount of Euro 10 billion and Euro 3.5 billion, with a
maturity in 2026 and 2025 respectively are available for both the Company and Enel S.p.A.
Furthermore, Enel S.p.A. has confirmed through a letter dated 8 January 2025 its commitment to explicitly
provide the Company with the financial support until the date of approval of full year 2025 financial
statements of the Company. Enel S.p.A is a Guarantor on the bonds and commercial paper program.
Maturity analysis
The table below summarizes the maturity profile of the Company’s long-term debt on contractual
undiscounted payments.
Maturing in
Millions of Euro
2025
2026
2027
2028
2029
Beyond
Bond
Listed Bond (Fixed rate)
3,855
3,773
3,096
1,139
3,061
11,493
Listed Bond (Floating rate)
52
-
-
-
-
-
Unlisted Bond (Fixed rate)
2,400
2,080
2,499
2,968
2,678
16,685
Total Bond
6,307
5,853
5,595
4,107
5,739
28,178
43
Notes to the statement of profit or loss and other comprehensive income
1 Interest income/ (expense) – Euro 543 million
Millions of euro
2024
2023
Change
Interest income:
- interest income on long-term financial assets
1,584
1,482
102
- interest income on short-term financial assets
429
514
(85)
- interest income from derivatives
294
269
25
- interest income from cash collaterals
31
19
12
Total interest income
2,338
2,284
54
Interest expense:
- interest expense on borrowings
16
18
(2)
- interest expense on bonds
1,529
1,357
172
- interest expense on commercial papers
129
134
(5)
- interest expense from derivatives
110
176
(66)
- interest expense from cash collaterals
20
24
(4)
- guarantee fee
64
64
-
Total interest expense
1,868
1,773
95
Net interest income/ (expense)
470
511
(41)
Interest income from assets amounted to Euro 2,338 million on 31 December 2024, having an increase
of Euro 54 million with the variation mainly attributed to:
- higher interest income from Enel subsidiaries and affiliates incorporated in Italy (Euro 63 million),
in Chile (Euro 29 million), in Spain (Euro 5 million), in South Africa (Euro 2 million) and in the
Netherlands (Euro 1 million)
- increase of interest income from derivatives (Euro 25 million);
- increase of interest income from cash collaterals (Euro 12 million).
Such increase has been partly offset by:
- lower interest income from Enel subsidiaries and affiliates incorporated in Brazil (Euro 48 million),
in Romania (Euro 17 million), in Mexico (Euro 16 million), in Australia (Euro 1 million) and in Costa
Rica (Euro 1 million).
Interests expenses on financial debt totaled Euro 1,868 million increased by Euro 95 million mainly due
to:
- an increase of interest expenses for bonds due to newly issued and matured debt and interest
expenses (Euro 99 million);
- an increase of interest expenses for bonds linked to the achievement of sustainability targets that
triggers step-up mechanism in 2023 (Euro 73 million);
- higher interest paid to Group companies mainly to Enel Iberia S.r.l. (Euro 1 million);
This increase was partly offset by:
- a decrease of interest expense from derivatives (Euro 66 million);
- a decrease of interest charges from the Commercial Paper (Euro 5 million);
- a decrease of interest expense from cash collaterals (Euro 4 million);
44
- lower interest expenses belong to Group companies mainly to EGP Romania S.r.l. (Euro 3 million);
2. Other operating expense – Euro (4) million
Other operating expense decreased by Euro 1 million totaling Euro 4 million and referred to services (mainly
related to legal and consultancy charges) for Euro 3 million and to personnel costs for Euro 1 million
(remuneration in amount of Euro 0.9 million and social changes in amount of Euro 0.1).
At 31 December 2024 the Company had, other than the directors, nine employees and one seconded
personnel (eight employees and two seconded personnel at 31 December 2023). In 2024 average
headcount comprised nine people (nine people for 2023). All people worked in the Netherlands.
3. Financial income/(expense)– Euro nil million
3.1 Financial income/(expense) from derivatives
Millions of euro
2024
2023
Change
Financial income from derivatives:
- income from cash flow hedge derivatives
1,392
198
1,194
- income from fair value hedge derivatives
34
42
(8)
- income from derivatives at fair value through profit or loss
158
38
120
Total finance income from derivatives
1,584
278
1,306
Financial expense from derivatives:
- expenses from cash flow hedge derivatives
206
593
(387)
- expenses from fair value hedge derivatives
19
16
3
- expenses from derivatives at fair value through profit or loss
212
77
135
Total financial expense from derivatives
437
686
(249)
Net income/(expense) from derivatives
1,147
(408)
1,555
Net financial income from derivatives totaled to Euro 1,147 million and essentially reflected net financial
expenses from cash flow derivatives (Euro 1,186 million), net income from fair value hedge derivatives
(Euro 15 million) and net financial loss from derivatives at fair value through profit and loss (Euro 54
million).
The increase of Euro 1,555 million compared with the previous year was due to increase in net financial
income from cash flow hedge derivatives (Euro 1,581 million), partly offset by a decrease of financial
income from fair value hedge derivatives (Euro 11 million) and an increase of net financial expenses from
derivatives at fair value though profit and loss (Euro 15 million).
The net balance recognized in 2024 on both hedging and trading derivatives mainly reflected the hedging
of currency risk.
For more detail about derivative financial instruments, please refer to the note 16 and 17.
45
3.2 Other net financial income/ (expense)
Millions of euro
2024
2023
Change
Other financial income
- positive exchange rate differences
184
657
(473)
-reversal of impairment
11
11
Total other financial income
195
657
(462)
Other financial expenses
-negative exchange rate differences
1,336
234
1,102
-impairment
-
3
(3)
-fair value adjustment on bond
6
28
(22)
Total other financial expense
1,342
265
1,077
Net other financial income/ (expense)
(1,147)
392
(1,539)
Net other financial income totaled to Euro 1,147 million composed to net exchange rate differences (Euro
1,152 million), fair value adjustment on bond (Euro 6 million) partly offset by impairment reversal (Euro
11 million).
Net foreign exchange loss totaled to Euro 1,152 million consisted of: negative revaluation of the outstanding
value of bonds denominated in foreign currencies (Euro 1,217 million), partly offset by negative foreign
currency evaluation of non-euro group portfolio (Euro 74 million) and other foreign exchange losses (Euro
9 million).
The amount of the foreign exchange loss arisen from the revaluation of notional value of bonds (Euro 1,191
million) and the amount of forex exchange gain arisen from several BRL and USD loans (Euro 37 million)
are mitigated by the same amount recycled to the Cash Flow Hedge equity reserve.
The following table shows impairment losses recognized and reversed during the period.
Millions of euro
2024
2023
Change
Expected credit losses:
Long-term loans and financial receivables (including current portion)
1
15
(14)
Short-term loans and financial receivables
8
8
-
Total expected credit losses
9
23
(14)
Reversals of expected credit losses:
Long-term loans and financial receivables (including current portion)
8
5
3
Short-term loans and financial receivables
12
15
(3)
Total reversals of expected credit losses
20
20
-
Total expected credit losses/ (reversal of expected credit losses)
(11)
3
(14)
Reversal of impairment is mainly attributed to the repayment of long-term loans and change in structure
of short-term revolving credit lines and loans granted to Enel Group Companies.
46
4 Income tax (income)/expenses – Euro 131 million
Millions of euro
2024
2023
Change
Profit before income taxes
466
490
(24)
Withholding tax on foreign interests
6
18
(12)
Current tax
89
74
15
Deferred tax
36
48
(12)
Income taxes
131
140
-9
Effective tax rate
28.1%
28.6%
The following table reconciles the theoretical tax rate with the effective tax rate.
Millions of euro
2024
2023
Change
Accounting profit before income tax
466
490
(24)
Tax rate applicable
25.8%
25.8%
Theoretical tax expense
120
127
-7
Adjustments in respect of current income tax of previous years
1
-
1
Withholding tax deduction
(2)
(5)
3
Withholding tax paid abroad
12
18
(6)
Income taxes
131
140
(9)
The increase of tax changes was attributable to higher taxable profit recorded in the reporting period
compared to the previous year. The effective tax rate in 2024 was 28.1% (28.6% in 2023) compared with
the standard Dutch rate of 25.8% which was driven mainly by the tax on interest income withheld abroad.
47
Notes to the statement of financial position
5 Deferred tax assets (liabilities) – Euro 568 million
Changes in deferred tax assets and deferred tax liabilities, grouped by type of temporary difference, are
shown below.
Millions of euro
at Dec. 31,
2023
Increase/
(Decrease)
taken to
income
statement
Increase/
(Decrease)
taken to
equity
at Dec. 31,
2024
Deferred tax asset
Nature of temporary differences:
- derivatives
261
-
196
457
- losses with deferred deductibility
130
(33)
-
97
- measurement of financial instruments
16
(2)
-
14
Deferred tax asset
407
(35)
196
568
Net deferred tax asset
407
(35)
196
568
Deferred tax assets totaled to Euro 568 million, having an increase by Euro 161 million mainly due to
increase of deferred tax assets on effective portion in fair value of cash flow hedges (Euro 266 million),
partly offset by a decrease of deferred tax assets on hedging costs (Euro 70 million), a decrease of deferred
tax assets recorded for carrying forward losses (Euro 33 million) and a decrease of deferred tax assets
attributed to expected credit loss allowance (Euro 2 million).
48
6 Long-term loans and financial receivables including portion falling due within
twelve month – Euro 41,485 million
Following table represents medium long-term loans granted to Enel Group companies and affiliated
companies:
Millions of Euro
at Dec. 31,
2024
at Dec. 31,
2023
Change
Long-term loans
Loan receivable from Enel S.p.A.
14,142
14,274
(132)
Loan receivable from Enel Italia S.p.A.
16,450
16,450
-
Loan receivable from Endesa SA
3,525
3,525
-
Loan receivable from Enel Iberia Srl
2,304
2,654
(350)
Loan receivable from Enel Green Power S.p.A.
1,335
1,447
(112)
Loan receivable from Enel Chile SA
988
1,071
(83)
Loan receivable from Energia Limpia de Amistad SA de CV
109
117
(8)
Loan receivables from Enel X S.r.l.
100
100
-
Loan receivable from Energía Limpia de Palo Alto SA de Cv
99
104
(5)
Loan receivable from Parque Salitrillos SA de Cv
67
64
3
Loan receivable from EGP Magdalena Solar SA DE CV
57
60
(3)
Loan receivables from Dolores Wind Sa De Cv
56
59
(3)
Loan receivable from Dominica Energía Limpia SA de Cv
53
59
(6)
Loan receivable from Villanueva Solar SA de CV
63
55
8
Loan receivable from Parque Solar Villanueva Tres SA de CV
42
37
5
Loan receivable from Vientos del Altiplano SA de Cv
28
33
(5)
Loan receivables from Parque Amistad II SA DE CV
26
27
(1)
Loan receivables from Parque Amistad III SA DE CV
25
26
(1)
Loan receivable from Parque Solar Don Jose SA de CV
25
22
3
Loan receivable from PH Chucas SA
24
25
(1)
Loan receivables from ENEL PANAMA CAM, S.R
18
21
(3)
Loan receivable from Enel X Korea Ltd
5
5
-
Loan receivables from NGONYE POWER COMPANY Ltd
3
3
-
Loan receivable from ENERNOC TAIWAN LTD
1
2
(1)
Loan receivable from Slovak Power Holding BV
-
754
(754)
Loan receivable from Enel Global Trading S.p.A.
-
200
(200)
Loan receivable from Companhia Energetica Do Ceara - Coelce
-
93
(93)
Loan receivable from Enel Brazil S.A.
-
92
(92)
Loan receivable from Ampla Energia E Serviços S.A.
-
46
(46)
Total loans
39,545
41,425
(1,880)
Expected credit loss
39
47
(8)
Total loans net of expected credit loss
39,506
41,378
(1,872)
Short-term portion of long-term loans represented in the table below:
49
Millions of euro
at Dec. 31,
2024
at Dec. 31,
2023
Change
Short-term portion of long-term loans
Loan receivable from Enel S.p.A.
132
132
-
Loan receivable from Endesa S.A.
-
3,000
(3,000)
Loan receivable from Slovak Power Holding BV
770
-
770
Loan receivable from Enel Iberia Srl
350
350
-
Loan receivable from Enel Global Trading S.p.A.
200
-
200
Loan receivable from Enel Chile SA
156
146
10
Loan receivable from Enel Green Power S.p.A.
112
111
1
Loan receivable from Enel Brazil S.A.
92
160
(68)
Loan receivable from Companhia Energetica Do Ceara - Coelce
78
-
78
Loan receivable from Ampla Energia E Serviços S.A.
46
285
(239)
Loan receivable from Energía Limpia de Palo Alto SA de Cv
12
10
2
Loan receivable from PH Chucas SA
8
13
(5)
Loan receivable from Dolores Wind Sa De Cv
6
9
(3)
Loan receivable from EGP Magdalena Solar SA DE CV
6
9
(3)
Loan receivables from ENEL PANAMA CAM, S.R
4
5
(1)
Loan receivables from Parque Amistad II SA DE CV
3
4
(1)
Loan receivables from Parque Amistad III SA DE CV
3
4
(1)
Loan receivable from Parque Salitrillos SA de Cv
3
3
-
Loan receivable from ENERNOC TAIWAN LTD
1
-
1
Total
1,982
4,241
(2,259)
Expected credit loss
3
6
(3)
Total loans net of expected credit loss
1,979
4,235
(2,256)
The table below reports long-term financial receivables by currency and interest rate.
Millions of Euro
Balance
Nominal
value
Effective
interest
rate
Balance
Nominal
value
Effective
interest
rate
at Dec. 31,
2024
at Dec. 31,
2023
Euro
39,565
39,565
3.14%
43,449
43,449
3.39%
Brazilian Real
78
78
12.7%
233
233
6.3%
Mexican Peso
191
191
12.6%
210
210
12.6%
US dollar
1,690
1,691
4.5%
1,772
1,772
4.9%
Zambian Kwacha
3
3
25.9%
2
2
25.9%
Total non-Euro currencies
1,962
1,963
2,217
2,217
Total
41,527
41,528
45,666
45,666
50
7. Derivatives – Euro 160 million
Derivative instruments refer to: (i) Cash flow hedge derivatives used by the Company to hedge the
exchange rate and interest rate fluctuations of bonds and long-term loans or receivables; (ii) derivatives
at fair value through profit and loss used by the Company to mitigate the loan interest rate fluctuations
and (iii) fair value hedge derivative on interest rate risk.
Millions of euro
Non Current
Current
at Dec. 31,
2024
at Dec. 31,
2023
at Dec. 31,
2024
at
Dec.
31,
2023
Derivative financial assets
1,170
845
32
55
Derivative financial liabilities
1,244
1,405
118
76
For more details about the nature, the recognition and classification of derivative financial assets and
liabilities, please refer to the note 17.
8 Other non-current financial assets – Euro 30 million
Other non-current financial assets totaled Euro 30 million as at 31 December 2024 (Euro 33 million as at
31 December 2023) are essentially accounted for by transaction costs on Euro 13.5 billion revolving credit
facility agreed on 5 March 2021 between Enel SpA, Enel Finance International N.V. and Mediobanca and
prepaid expenses of derivative agreements.
51
9 Short-term loans and financial receivables – Euro 7,080 million
The following table shows the breakdown of the short-term loans granted to Enel Group and affiliated
companies:
Millions of euro
at Dec.
31,
2024
at Dec.
31,
2023
Change
Short-term loans
Enel S.p.A. - Financial Services Agreement
1,929
733
1,196
Revolving short-term facility agreement with Enel S.p.A
3,000
4,500
- 1,500
Revolving short-term facility agreement with Enel Italia S.p.A
2,000
2,000
-
Revolving short-term facility agreement with Enel Green Power South Africa Pty
77
71
6
Revolving short-term facility agreement with Dolores Wind Sa De Cv
19
15
4
Revolving short-term facility agreement with EGP Magdalena Solar SA DE CV
19
14
5
Revolving short-term facility agreement with PARQUE AMISTAD III SA
16
13
3
Revolving short-term facility agreement with PARQUE AMISTAD II SA
14
9
5
Revolving short-term facility agreement with PARQUE AMISTAD IV SA
13
8
5
Revolving short-term facility agreement with EGP GERMANY GMBH
3
1
2
Revolving short-term facility agreement with Enel Americas SA
-
588
(588)
Revolving short-term facility agreement with Principia Energy A.E.
-
67
(67)
Revolving short-term facility agreement with S4MA DEVELOPMENTS SPOLKA Z
OGRANICZONA ODPOWIEDZIALNOSCIA
-
3
(3)
Revolving short-term facility agreement with Enel X Way Perú S.A.
-
3
(3)
Revolving short-term facility agreement with EGP KOREA
-
1
(1)
Revolving short-term facility agreement with EGP VIETNAM LLC
-
1
(1)
Total short term loans
7,090
8,027
(937)
Expected credit loss
10
9
1
Total loans net of expected credit loss
7,080
8,018
(938)
The table below reports short -term financial receivables by currency and interest rate.
Millions of Euro
at Dec. 31,
2024
at Dec. 31,
2023
Balance
Nominal
value
Effective
interest
rate
Balance
Nominal
value
Effective
interest
rate
Total Euro
6,932
6,932
3.5%
7,303
7,303
4.6%
South African rand
77
77
10.2%
71
71
10.2%
US dollar
81
81
7.9%
653
653
7.1%
Total non-Euro currencies
158
158
724
724
Total
7,090
7,090
8,027
8,027
52
The table below reports the financial facilities granted to the Enel Group companies:
Facility Agreements
Financial
relationship
Commitment
amount as at
31 Dec 2024
Rate of
Interest
Spread
as at 31
Dec
2024
Commitment fee
as at 31 Dec 2024
Millions of Euro
Enel Green Power Germany GmbH
Revolving credit facility
3.00
EURIBOR 3M
2.50%
35% of the margin
per annum
Endesa S.A.
Revolving credit facility
1,125.00
EURIBOR 1/3/6M
1.32%
35% of the margin
per annum
Endesa S.A.
Revolving credit facility
1,000.00
EURIBOR 1/3/6M
0.63%
0.0002
Enel
Brasil/Electropaulo/Ampla/Companhia
Energetica do Ceara
Revolving credit facility
150.00
EURIBOR 1/3 M
1.20%
35% of the margin
of 120 bps
Enel Italia S.p.A.
Revolving credit facility
2,000.00
EURIBOR 1/3/6M
0.95%
35% of the margin
per annum
Enel S.p.A.
Revolving credit facility
4,500.00
EURIBOR
1W/1/3/6M
0.70%
35% of the margin
per annum
Millions of USD
Dolores Wind Sa De Cv
Revolving credit facility
20.00
SOFR
3.30%
35% of the margin
per annum
Egp Magdalena Solar SA de CV
Revolving credit facility
20
SOFR
3.70%
35% of the margin
per annum
Enel Americas S.A.
Revolving credit facility
500.00
SOFR
1.08%
35% of the margin
per annum
Enel Chile S.A.
Revolving credit facility
50.00
SOFR
1.00%
30% of the margin
Enel Chile S.A.
Revolving credit facility
290.00
SOFR
1.00%
35% of the margin
per annum
Parque Amistad Ii Sa De Cv
Revolving credit facility
15.00
SOFR
3.70%
35% of the margin
per annum
Parque Amistad Iii Sa De Cv
Revolving credit facility
20.00
SOFR
3.70%
35% of the margin
per annum
Parque Amistad Iv Sa De Cv
Revolving credit facility
15.00
SOFR
3.70%
35% of the margin
per annum
Millions of ZAR
Enel Green Power RSA (Pty) Ltd
Revolving credit facility
1,700.00
Fixed
n/a
0.90%
10 Other current financial assets – Euro 1,281 million
Millions of Euro
at Dec. 31,
2024
at Dec. 31,
2023
Change
Cash collateral on derivatives
944
947
(3)
Current financial accrued income
335
387
(52)
Other current financial receivables
2
3
(1)
Total other current financial assets
1,281
1,337
(56)
While other current financial assets are also subject to the impairment requirements of IFRS 9, the identified
impairment loss was immaterial.
53
11 Cash and cash equivalents – Euro 1 million
Cash and cash equivalent represent the cash availability deriving by the turnover of the lending portfolio
of the Company, temporary not invested in lending activities within Enel Group and placed in time deposits
operations with primary bank counterparties.
Millions of euro
at Dec.
31,
2024
at Dec. 31,
2023
Change
Bank balances
1
2
(1)
Bank deposits
-
1
(1)
Total cash and cash equivalents
1
3
(2)
While cash and cash equivalents are also subject to the impairment requirements of IFRS 9, the identified
impairment loss was immaterial.
Cash balances are mostly denominated in euro. Cash balances are not restricted by any encumbrances.
12 Shareholder’s equity – Euro 5,683 million
Share capital – Euro 1,479 million
The authorized share capital of the company amounts to Euro 2,500 million, divided into 2,500 million of
shares, each share with a nominal value of Euro 1.0 each.
The issued and paid-up share capital amounts to Euro 1,478.8 million represented by 1,478,810,371 shares
with nominal value of Euro 1.0 each increased by 1 share as a result of demerger in 2016 of Enel Green
Power International B.V.
The share capital was unchanged compared with the amount reported at 31 December 2023
Share premium reserve– Euro 4,826 million
The reserve arises from the cross-border merger finalized during 2010 between Enel Finance International
S.A. and Enel Trading RUS B.V. (Euro 43 million) and demerger of net assets from Enel Green Power
International B.V. in October 2016 (Euro 983 million) and the capital contribution (Euro 8,100 million)
made by the parent company in October 2021.
In 2024 the Company repaid share premium in amount of Euro 4,300 million to its shareholders.
Legal reserves include reserves such as reserve from effective portion of change in the fair value of cash
flow hedges and reserve from cost of hedging.
Hedging reserve (legal reserve) – Euro (1,510) million
The reserve includes the effective portion of the cumulative net change in the fair value of cash flow hedging
instruments related to hedged transactions.
Considering the nature of the reserve (legal), up to the amount of the negative balance of this reserve, no
distributions may be charged to the free reserves.
For more details about the nature, the recognition and classification of derivative financial assets and
liabilities, please refer to the note 17.
54
Hedging costs reserve (legal reserve) – Euro 194 million
This reserve includes net gains (losses) recognised directly in equity resulting from the measurement of
fair value cost of hedging (i.e. time value, forward element and currency basis) when excluded from hedging
relationship.
Considering the nature of the reserve (legal), up to the amount of the negative balance of this reserve, no
distributions may be charged to the free reserves.
For more details please refer to the note 17.
Capital Management
It is the policy of the Company to maintain a strong capital base to preserve creditors and market
confidence and so to sustain future development of the business. The Board of Directors monitors the
return on capital that the Company defines as total shareholder’s equity, the developments in the level of
its debt in relation to equity and the level of dividends to ordinary shareholders.
The return of capital is calculated as a percentage of financial result on total equity net of cash flow hedge
reserve excluded in this key performance indicator because Company’s management preferred to exclude
evaluation equity reserves which might be quite volatile over the periods:
Millions of euro
at Dec. 31,
2024
at Dec. 31,
2023
Total Equity
5,683
10,213
Cash flow hedge and cost of hedging reserves
(1,316)
(751)
Adjusted equity
6,999
10,964
Net financial result
335
350
Return of capital (*)
4.8%
3.2%
* Key Performance Indicator determined on a yearly basis.
The Board’s objective is to maintain a balance between the higher returns that might be possible with
higher levels of borrowings and the advantages and security afforded by a sound capital position.
The Company is not subject to externally imposed capital requirements.
Proposal for net result appropriation
The Board of Directors proposes to the General meeting of Shareholders the allocation of the net result of
the year 2024 to the Company’s retained earnings/ (accumulated loss).
13 Long-term loans and borrowings (including the portion falling due within
twelve months for Euro 4,906 million) – Euro 41,254 million
This note provides information about the contractual terms of the Company’s interest bearing loans and
borrowings, which are measured at amortized cost. For more information about the Company’s exposure
to interest rate, foreign currency and liquidity risk, see paragraph “Risk management”.
The aggregate includes long-term payables in respect of bonds, bank loans, revolving credit facility and
other loans in Euro and other currencies.
The following table shows the nominal values, carrying amounts of long-term debt at 31 December 2024,
including the portion falling due within 12 months, grouped by type of borrowing and type of interest
rate:
55
Millions of Euro
Balance
Nominal
value
Portion
due in
more
than
12
months
Current
portion
Balance
Nominal
value
Portion
due in
more
than
12
months
Current
portion
at Dec. 31,
2024
at Dec. 31,
2023
Bond
Listed Bond (Fixed rate)
23,022
23,246
19,609
3,414
24,484
24,823
21,015
3,469
Listed Bond (Floating rate)
50
50
-
50
150
150
50
100
Unlisted Bond (Fixed rate)
18,182
18,352
16,733
1,448
16,572
16,752
15,215
1,357
Total Bond
41,254
41,648
36,342
4,912
41,206
41,725
36,280
4,926
The table below reports long-term financial debt by currency and interest rate.
Millions of Euro
at Dec. 31,
2024
at Dec. 31,
2023
at Dec. 31,
2024
Balance
Nominal
value
Balance
Current average
interest rate
Effective
interest
rate
Total Euro
20,031
20,170
20,510
1.7%
2.1%
US dollar
17,970
18,135
16,374
4.9%
5.1%
Pound sterling
3,115
3,205
3,940
4.0%
4.2%
Swiss Franc
138
138
382
4.0%
4.0%
Total non-Euro currencies
21,223
21,478
20,696
Total
41,254
41,648
41,206
The table below reports changes in the nominal value of long-term debt during the year.
Millions of Euro
Nominal value
New
financing
Capitalised
interests on
ZCB
Repayments
Other
changes
Exchange
rate
differences
Nominal value
at Dec. 31,
2023
at Dec. 31,
2024
Bonds in non-Euro
currencies and Euro
currency
41,725
3,622
13
4,941
6
1,223
41,648
Total long-term
financial debt
41,725
3,622
13
4,941
6
1,223
41,648
New bonds issue
On 16 January 2024 the Company launched a dual-tranche “Sustainability-Linked Bond” for institutional
investors in the Eurobond market for a total of 1,750 million euros:
Specifically, the issue is structured in the following tranches:
- Euro 750 million at a fixed rate of 3.375% and maturity on 23 January 2028;
- Euro 1,000 million at a fixed rate of 3.875% and maturity on 23 January 2035;
On 19 June the Company launched a dual-tranche “Sustainability-Linked bond” for institutional investors
in the US and international markets for a total of USD 2,000 million.
56
The issue is structured in the following two tranches
- USD 1,250 million (approx. Euro 1,170 million) at a fixed rate of 5.125% and maturity on
26 June 2029;
- USD 750 million (approx. Euro 702 million) at a fixed rate of 5.500% on 26 June 2034.
Bond repayments
Repayment at maturity
- Euro 100 million in respect of a floating-rate bond matured on 21 February 2024;
- Euro 1,000 million in respect of a fix-rate bond matured on 17 June 2024;
- GBP 850 million (approx. Euro 990 million) in respect of a fix-rate bond matured on 14 August
2024;
- CHF 225 million (approx. Euro 240 million) in respect of a fix-rate bond matured on 3 September
2024;
- USD 1,500 million (approx. Euro 1,361 million) in respect of a fix-rate bond matured on
10 September 2024;
- Euro 1,250 million in respect of a fix-rate bond matured on 16 September 2024.
Debt covenants
The main long-term financial debts of the Company are governed by covenants containing undertakings by
the borrowers (Enel S.p.A. and the Company) and by Enel S.p.A. as guarantor that are commonly adopted
in international business practice. The main covenants for the Company are related to the bond issues
carried out within the Euro / Global Medium-Term Notes Programme and the Revolving Facility Agreement
dated 5 March 2021 as amended and restated on May 11, 2022, between Enel S.p.A., the Company and a
pool of banks, of up to Euro 13.5 billion (“Amended Revolving Facility Agreement”). Covenants are non-
financial. To date none of the covenants have been triggered.
The main covenants in respect of the bond issues under the Global/Euro Medium-Term Notes program
(including the Green Bonds of the Company guaranteed by Enel S.p.A., which are used to finance the
Group’s eligible green projects) and those related to the bonds issued by the Company on the US market
guaranteed by Enel SpA can be summarized as follows:
• negative pledge clauses under which the issuer may not establish or maintain (except under
statutory requirement) mortgages, liens or other encumbrances on all or part of its assets or
revenues to secure any listed bond or bond for which listing is planned unless the same guarantee
is extended equally or pro rata to the bonds in question;
• pari passu clauses, under which the securities constitute a direct, unconditional and unsecured
obligation of the issuer and are issued without preferential rights among them and have at least
the same seniority as other unsubordinated and unsecured obligations, present and future, of the
issuer;
• under cross-default clauses, the occurrence of a default event (above a threshold level) in respect
of certain indebtedness of the issuer constitutes a default in respect of the bonds in question, which
may become immediately repayable;
From 2019, the Company issued some “sustainable” bonds on the European market (as part of the Euro
Medium Term Notes - EMTN bond issue program) and on the US market, guaranteed by Enel SpA, linked
57
to the achievement of a number of the Sustainable Development Goals (SDGs) of the United Nations that
contain the same covenants as other bonds of the same type.
The main covenants for the Amended Revolving Facility Agreement involving the Company and Enel S.p.A.
can be summarized as follows:
• negative pledge clause under which the borrower (and Enel S.p.A.’s significant subsidiaries) may
not establish or maintain (with the exception of permitted guarantees) mortgages, liens or other
encumbrances on all or part of their assets to secure certain financial indebtedness;
• pari passu clause, under which the payment obligation of the borrower have at least the same
seniority as its other unsubordinated and unsecured payment obligations;
• change of control clause which is triggered in the event (i) control of Enel is acquired by one or
more shareholders other than the Italian state or (ii) Enel or any of its subsidiaries transfer a
substantial portion of the Group’s assets to any other persons outside the Group such that the
financial reliability of the Group is significantly compromised. The occurrence of one of the two
circumstances may give rise to (a) the renegotiation of the terms and conditions of the facility or
(b) compulsory early repayment of the facility by the borrower;
• rating clauses, which provide for the borrower to maintain their rating above a certain specified
level;
• under cross-default clause, the occurrence of a default event (above a threshold level) in respect
of certain financial indebtedness of the borrower or Enel S.p.A.’s “significant” subsidiaries (i.e.
consolidated companies whose gross revenues or total assets are at least equal to a specified
percentage (10% of gross consolidated revenues or total consolidated assets)) constitutes a default
in respect of the facility in question, which may become immediately repayable;
• disposals clause, under which the borrower (and Enel S.p.A.’s controlled subsidiaries) may not
dispose of all or any material part of their assets or undertaking with the exception of permitted
disposals.
None of the covenants indicated above has been triggered to date.
The following table provides disclosures about changes in bonds and commercial papers, as defined in the
cash flows statements, including both changes arising from cash flows and non-cash changes.
Millions of Euro
Notes
at Jan.1,
2023
Changes from
financing cash
flows
Non-cash changes
at Dec.
31,
2024
New
issues
Repayments
and other
net changes
Effect of
changes in
foreign
exchange
rates
Changes
in fair
values
Other
non-
cash
changes
Long-term borrowings
13
41,206
3,622
4,941
1,217
6
144
41,254
Commercial papers
14
2,136
-
335
-
-
-
1,801
Total
43,342
3,622
5,276
1,217
6
144
43,055
58
14 Short-term loans and borrowings – Euro 2,635 million
Millions of Euro
at Dec. 31,
2024
at Dec. 31,
2023
Change
Short-term loans from the Enel Group and associated companies
202
179
23
Commercial papers
1,801
2,136
(335)
Cash collaterals on derivatives
628
447
181
Overdraft
4
-
4
Short-term financial debt
2,635
2,762
(127)
Short-term loans
At 31 December 2024 short-term loans totaled to Euro 202 million having an increase by Euro 23 million
comparing with 31 December 2023.
Millions of Euro
Original
currency
at Dec. 31,
2024
at Dec. 31,
2023
Change
Enel Iberia S.r.l.
Euro
202
176
26
Enel X Germany GmbH
Euro
-
2
(2)
Enel Green Power Turkey Enerji Yatirimlari Anonim Sirketi
TRY
-
1
(1)
Total
202
179
23
Commercial Papers
The payables represented by commercial papers relate to outstanding issuances at 2024 year-end in the
context of the Euro Commercial Paper Programme (hereinafter, also “ECP Programme”), launched in 2005
by the Company and guaranteed by Enel S.p.A.
In the context of the last update of the commercial paper programme the Company can issue short-term
promissory notes issued in the interest-bearer form up to an amount of Euro 8,000 million. Each note can
be denominated in any currency, with a minimum denomination of Euro 500,000 (or GBP 100,000, or USD
500,000, or JPY 100 million or its equivalent in the relevant currency) and a maturity between one day and
one year. The notes may be issued on a discounted basis or may bear fixed or floating interest rate or a
coupon calculated by reference to an index or formula, and are not listed on any stock exchange.
The total nominal value of commercial papers issued and not yet reimbursed as of 31 December 2024 was
Euro 1,801 million (Euro 2,136 million at 31 December 2023)
15 Other current financial liabilities – Euro 449 million
Other current financial liabilities increased by Euro 20 million and mainly related to interest expenses
accrued on debt outstanding at 31 December 2024.
All payments are expected within 12 months.
16 Fair value measurement
The fair value of assets and liabilities is categorized into a fair value hierarchy that provides three levels
defined as follows on the basis of the inputs to valuation techniques used to measure fair value:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities to which the company
has access at the measurement date;
59
Level 2: inputs other than quoted prices included within level 1 that are observable for the asset or liability,
either directly (that is, as prices) or indirectly (that is, derived from prices);
Level 3: inputs for the asset or liability that are not based on observable market data (that is, unobservable
inputs).
In this note, the relevant disclosures are provided in order to assess the following:
- for assets and liabilities that are measured at fair value on a recurring or non-recurring basis in the
balance sheet after initial recognition, the valuation techniques and inputs used to develop those
measurements; and
- for recurring fair value measurements using significant unobservable inputs (Level 3), the effect of
the measurements on profit or loss or other comprehensive income for the period.
For this purpose:
- recurring fair value measurements are those that IFRSs require or permit in the balance sheet at
the end of each reporting period;
- non-recurring fair value measurements are those that IFRSs require or permit in the balance sheet
in particular circumstances.
The fair value of derivative contracts is determined using the official prices for instruments traded on
markets.
The fair value of instruments not listed on a market is determined using valuation methods appropriate for
each type of financial instrument and market data as of the close of the period (such as interest rates,
exchange rates, volatility), discounting expected future cash flows on the basis of the market yield curve
and translating amounts in currencies other than the euro using exchange rates provided by the European
Central Bank.
The notional amount of a derivative contract is the amount on which cash flows are exchanged. This amount
can be expressed as a value or a quantity (for example tons, converted into euros by multiplying the
notional amount by the agreed price).
Amounts denominated in currencies other than euro are converted into euros at the exchange rate provided
by the European Central Bank.
The notional amounts of derivatives reported here do not necessarily represent amounts exchanged
between the parties and therefore are not a measure of the company’s credit risk exposure.
For listed debt instruments, the fair value is given by official prices. For unlisted instruments the fair value
is determined using appropriate valuation techniques for each category of financial instrument and market
data at the closing date of the year, including the credit spreads of Enel Finance International N.V.
Assets and liabilities measured at fair value in the financial statements
The following table shows the fair value measurement at the end of the reporting period and the level in
the fair value hierarchy into which the fair value measurements are categorised:
60
Millions of Euro
Non Current
Current
at
Dec.
31,
2024
Level
1
Level
2
Level
3
at
Dec.
31,
2024
Level
1
Level
2
Level
3
DERIVATIVE ASSETS
Cash flow hedge
on interest rate risk
6
-
6
-
-
-
-
-
on foreign exchange risk
1,153
-
1,153
-
25
-
25
-
Total
1,159
-
1,159
-
25
-
25
-
At fair value through profit or loss
on interest rate risk
11
-
11
-
-
-
-
-
on foreign exchange risk
-
-
-
-
7
-
7
-
Total
11
-
11
-
7
-
7
-
TOTAL DERIVATIVE ASSETS
1,170
-
1,170
-
32
-
32
-
DERIVATIVE LIABILITIES
Fair value hedge
on foreign exchange risk
12
-
12
-
-
-
-
-
Total
12
-
12
-
-
-
-
-
Cash flow hedge
on interest rate risk
23
-
23
-
-
-
-
-
on foreign exchange risk
1,198
-
1,198
-
95
-
95
-
Total
1,221
-
1,221
-
95
-
95
-
At fair value through profit or loss
on interest rate risk
11
-
11
-
-
-
-
-
on foreign exchange risk
-
-
-
-
23
-
23
-
Total
11
-
11
-
23
-
-
TOTAL DERIVATIVE LIABILITIES
1,244
-
1,244
-
118
-
118
-
61
Milions of euro
Non Current
Current
at
Dec.
31,
2023
Level
1
Level
2
Level
3
at
Dec.
31,
2023
Level
1
Level
2
Level
3
DERIVATIVE ASSETS
Fair value hedge
on foreign exchange risk
-
-
-
-
-
-
-
-
Total
-
-
-
-
-
-
-
-
Cash flow hedge
on interest rate risk
12
-
12
-
-
-
-
-
on foreign exchange risk
821
-
821
-
43
-
43
-
Total
833
-
833
-
43
-
43
-
At fair value through profit or loss
on interest rate risk
11
-
11
-
-
-
-
-
on foreign exchange risk
-
-
-
-
12
-
12
-
Total
11
-
11
-
12
-
12
-
TOTAL DERIVATIVE ASSETS
844
-
844
-
55
-
55
-
DERIVATIVE LIABILITIES
Fair value hedge
on foreign exchange risk
46
-
46
-
-
-
-
-
Total
46
-
46
-
-
-
-
-
Cash flow hedge
on interest rate risk
33
-
33
-
-
-
-
-
on foreign exchange risk
1,314
-
1,314
-
73
-
73
-
Total
1,347
-
1,347
-
73
-
73
-
At fair value through profit or loss
on interest rate risk
11
-
11
-
-
-
-
-
on foreign exchange risk
-
-
-
-
4
-
4
-
Total
11
-
11
-
4
-
-
TOTAL DERIVATIVE LIABILITIES
1,404
-
1,404
-
77
-
77
-
Assets and liabilities not measured at fair value in the financial statements
The following table shows, for each class of liabilities not measured at fair value in the balance sheet but
for which the fair value shall be disclosed, the fair value at the end of the reporting period and the level in
the fair value hierarchy into which the fair value measurements are categorized.
For listed debt instruments, the fair value is given by official prices while for unlisted instruments the fair
value is determined using appropriate valuation technique for each category of financial instrument and
market data at the closing date of the year.
62
Milions of euro
note
Fair value
Level 1
Level 2
Level 3
at Dec. 31,
2024
Financial assets at amortized cost
Medium/long-term financial receivables
6
41,127
-
41,127
-
Short-term financial receivables
9
5,201
-
5,201
-
Total
46,328
0
46,328
-
Borrowings:
Bonds
-fixed rate
13
39,901
39,755
146
-
-floating rate
13
50
-
50
-
Short-term loans from the Enel Group companies
14
308
-
308
-
Short-term borrowings at amortized cost
14
1,801
1,801
-
-
Total
42,060
41,556
504
-
Level 2 includes financial assets/liabilities measured at fair value on the basis of the curve on the market
for each currency and the exchange rate for the non-euro currency.
17 Derivatives and hedge accounting
Derivatives are initially recognised at fair value, on the trade date of the contract and are subsequently re-
measured at their fair value. The method of recognising the resulting gain or loss depends on whether the
derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.
Hedge accounting is applied to derivatives entered into, in order to reduce risks such as interest rate risk,
foreign exchange rate risk, when all the criteria provided by IFRS 9 are met.
The Company documents at the inception of the transaction the relationship between hedging instruments
and hedged items, as well as its risk management objectives and strategy. The Company also documents
its assessment, both at hedge inception and on an ongoing basis, of whether hedging instruments are
highly effective in offsetting changes in fair values or cash flows of hedged items.
For cash flow hedges of forecast transactions designated as hedged items, the Company assesses and
documents that they are highly probable and present an exposure to changes in cash flows that affect
profit or loss.
To be effective a hedging relationship shall meet all of the following criteria:
- existence of an economic relationship between hedging instrument and hedged item;
- the effect of credit risk does not dominate the value changes resulting from the economic
relationship;
- the hedge ratio defined at designation resulting equal to the one used for risk management
purposes (i.e. same quantity of the hedged item that the entity actually hedges and the quantity of the
hedging instrument that the entity actually uses to hedge the quantity of the hedged item).
Based on the IFRS 9 requirements, the existence of an economic relationship is evaluated by the Company
through a qualitatively assessment or a quantitatively computation, depending of the following
circumstances:
- if the underlying risk of the hedging instrument and the hedged item is the same, the existence of
an economic relationship will be provided through a qualitative analysis;
63
- on the other hand, if the underling risk of the hedging instrument and the hedged item is not the
same, the existence of the economic relationship will be demonstrated through a quantitative method
in addition to a qualitative analysis of the nature of the economic relationship (i.e. linear regression).
In order to demonstrate that the behaviour of the hedging instrument in line with those of the hedged item,
different scenarios will be analysed
In order to evaluate the credit risk effects, the Company considers the existence of risk mitigating measures
(collateral, mutual break-up clauses, netting agreements, etc.).
The Company has established a hedge ratio of 1:1 for all the hedging relationships as the underlying risk
of the hedging derivative is identical to the hedged risk, in order to minimize hedging ineffectiveness.
The hedge ineffectiveness will be evaluated through a qualitative assessment or a quantitative computation,
depending on the following circumstances:
- if the critical terms of the hedged item and hedging instrument match and there aren’t other sources
of ineffectiveness included the credit risk adjustment on the hedging derivative, the hedge relationship
will be considered fully effective on the basis of a qualitative assessment;
- if the critical terms of the hedged item and hedging instrument do not match or there is at least
one source of ineffectiveness, the hedge ineffectiveness will be quantified applying the dollar offset
cumulative method with hypothetical derivative. This method compares changes in fair values of the
hedging instrument and the hypothetical derivative between the reporting date and the inception date.
The main causes of hedge ineffectiveness may be the followings:
- basis differences (i.e. the fair value or cash flows of the hedged item depend on a variable that is
different from the variable that causes the fair value or cash flows of the hedging instrument to change);
- timing differences (i.e. the hedged item and hedging instrument occur or are settled at different
dates);
- quantity or notional amount differences (i.e. the hedged item and hedging instrument are based
on different quantities or notional amounts);
- other risks (i.e. changes in the fair value or cash flows of a derivative hedging instrument or hedged
item relate to risks other than the specific risk being hedged);
- credit risk (i.e. the counterparty credit risk differently impact the fair value movements of the
hedging instruments and hedging item)
Fair value hedge
Fair value hedges are used to protect the Company against exposures to changes in the fair value of assets,
liabilities or firm commitment attributable to a particular risk that could affect profit or loss. Changes in fair
value of derivatives that qualify and are designated as hedging instruments are recognised in the income
statement, together with changes in the fair value of the hedged item that are attributable to the hedged
risk.
If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of
a hedged item for which the effective interest rate method is used is amortized to profit or loss over the
period to maturity.
Cash flow hedge
Cash flow hedges are applied in order to hedge the Company exposure to changes in future cash flows that
are attributable to a particular risk associated with a recognised asset or liability or a highly probable
transaction that could affect profit or loss.
64
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow
hedges is recognised in other comprehensive income. The gain or loss relating to the ineffective portion is
recognised immediately in the income statement.
Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects
profit or loss.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge
accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised
when the forecast transaction is ultimately recognised in the income statement. When a forecast transaction
is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately
transferred to the income statement.
Hedging relationships using cross currency basis spread as hedging instrument, the Company separates
foreign currency basis spread, in designating the hedging derivative, and present them in other
comprehensive income (OCI).
The following tables report the notional amount and fair value of derivative financial assets and liabilities
by type of hedge relationship and hedged risk, broken down into current and non-current derivative
financial assets and liabilities.
The notional amount of a derivative contract is the amount on the basis of which cash flows are exchanged.
Amounts denominated in currencies other than the euro are converted at the end-year exchange rates
provided by the European Central Bank.
Milions of euro
Non Current
Current
Notional
amount
Fair value
Notional
amount
Fair value
at Dec.
31,
2024
at
Dec.
31,
2023
at
Dec.
31,
2024
at
Dec.
31,
2023
at
Dec.
31,
2024
at
Dec.
31,
2023
at
Dec.
31,
2024
at
Dec.
31,
2023
DERIVATIVE ASSETS
Fair value hedge
on foreign exchange risk
-
-
-
-
-
-
-
-
Total
-
-
-
-
-
-
-
-
Cash flow hedge
on interest rate risk
500
500
6
12
-
-
-
-
on foreign exchange risk
11,996
9,444
1,153
821
724
2,581
25
43
Total
12,496
9,944
1,159
833
724
2,581
25
43
DERIVATIVE LIABILITIES
Fair value hedge
on foreign exchange risk
605
577
12
46
-
-
-
-
Total
605
577
12
46
-
-
-
-
Cash flow hedge
on interest rate risk
601
701
23
33
50
100
-
-
on foreign exchange risk
8,185
8,821
1,198
1,314
1,189
995
95
73
Total
8,786
9,522
1,221
1,347
1,239
1,095
95
73
65
Hedge relationships by type of risk hedged
Interest rate risk
The following table shows the notional amount and the average price of interest rate risk hedging
instruments outstanding as at 31 December 2024 broken down by maturity:
Millions of euro
Maturity
2025
2026
2027
2028
2029
Beyond
Total
Interest rate swap:
Total Notional value
50
-
961
-
-
141
1,152
Notional value in Euro
50
-
961
-
-
-
1,011
Average interest rate in Euro
4.9
-
2.4
-
-
-
Notional value in USD
-
-
-
-
-
141
141
Average interest rate in USD
-
-
-
-
-
4.7
The following table reports the notional amount and fair value of the hedging instruments on interest rate
risk of transactions outstanding as at 31 December 2024 and 31 December 2023, broken down by type of
hedged item:
Millions of euro
Fair
value
Notional
amount
Fair
value
Notional
amount
Hedged instruments
Hedged item
at Dec. 31,
2024
at Dec. 31,
2023
Interest rate swaps
Floating-rate
borrowings
5
550
12
650
Interest rate swaps
Floating-rate
lendings
(22)
1,547
(33)
1,539
Total
(17)
2,097
(21)
2,189
The following table shows the notional amount and the fair value of hedging derivatives on interest rate
risk as at 31 December 2024 and 31 December 2023, broken down by type of hedge:
Millions of Euro
Notional
amount
Fair value
assets
Notional
amount
Fair value
liabilities
Derivatives
at
Dec.
31,
2024
at
Dec.
31,
2023
at
Dec.
31,
2024
at
Dec.
31,
2023
at
Dec.
31,
2024
at
Dec.
31,
2023
at
Dec.
31,
2024
at
Dec.
31,
2023
Interest rate swaps
973
944
17
24
1,124
1,245
34
45
Total
973
944
17
24
1,124
1,245
34
45
Cash flow hedge derivatives
The following table shows the cash flows expected in coming years from cash flow hedge derivatives on
interest rate risk:
Millions of euro
Fair
value
Distribution of expected cash flows
at Dec.
31,
2024
2025
2026
2027
2028
2029
Beyond
Cash flow hedge derivatives on interest rates:
- Positive fair value
6
4
1
1
-
-
-
- Negative fair value
(23)
(12)
(8)
(5)
(1)
(1)
(1)
Exchange rate risk
The following table shows the notional amount and the average price of foreign exchange risk hedging
instruments outstanding as at 31 December 2024 broken down by maturity.
66
Millions of euro
Maturity
2025
2026
2027
2028
2029
Beyond
Total
Cross currency interest rate swap:
Total Notional value
1,913
1,207
3,164
2,173.00
2,891
11,350
22,698
Notional value CCIRS Euro-USD
1,835
1,207
2,421
2,173.00
1,984
9,657
19,277
Average exchange rate Euro/USD
1.1
1.18
1.1
1.18
1.11
1.10
Notional value CCIRS Euro-GBP
-
-
605
-
907
1,693
3,205
Average exchange rate Euro/GBP
-
-
0.90
-
0.84
0.9
The following table shows the notional amount and the fair value of the hedging instruments on foreign
exchange risk of transactions outstanding as at 31 December 2024 and 31 December 2023, broken down
by type of hedged item:
Millions of euro
Fair
value
Notional
amount
Fair
value
Notional
amount
Hedged instruments
Hedged item
at Dec. 31,
2024
at Dec. 31,
2023
Cross currency interest rate swap (CCIRS)
Fixed-rate
borrowings in
foreign
currencies
(53)
21,478
(457)
20,968
Cross currency interest rate swap (CCIRS)
Fixed-rate
lendings in
foreign
currencies
(74)
1,221
(112)
1,450
Total
(127)
22,699
(569)
22,418
The following table shows the notional amount and the fair value of hedging derivatives on foreign
exchange risk of transactions outstanding as at 31 December 2024 and 31 December 2023, broken down
by type of hedge:
Millions of euro
Notional
amount
Fair value
assets
Notional
amount
Fair value
liabilities
Derivatives
at Dec.
31,
2024
at Dec.
31,
2023
at
Dec.
31,
2024
at
Dec.
31,
2023
at
Dec.
31,
2024
at Dec.
31,
2023
at Dec.
31,
2024
at Dec.
31,
2023
Cross currency interest rate swap (CCIRS)
12,720
12,026
1,178
864
9,979
10,392
(1,305)
(1,433)
Total
12,720
12,026
1,178
864
9,979
10,392
(1,305)
(1,433)
Fair value hedge derivatives
The following table shows separately gains or losses of fair value hedge derivatives on foreign exchange
risk and those on the hedged items attributable to the hedged risk for
Millions of CU
Net Gains /(Losses)
2024
2023
Hedging instruments
34
42
Hedged items
(6)
(28)
Ineffectiveness
-
-
67
Cash flow hedge derivatives
The following table reports expected cash flows related to derivatives for the coming years:
Millions of euro
Fair
value
Distribution of expected cash flows
at Dec.
31,
2024
2025
2026
2027
2028
2029
Beyond
Cash flow hedge derivatives on exchange rates:
- Positive Fair value derivatives
1,178
237
352
303
410
232
1,834
- Negative fair value derivatives
(1,293)
(51)
42
34
56
70
563
Impact of hedging derivatives on balance sheet, statement of profit or loss and other
comprehensive income and equity
The impact of the hedging instruments on the balance sheet is, as follows:
Millions of Euro
Notional
amount
Carrying
amount
Line item in
the
statement of
financial
position
Fair value
used for
measuring
ineffectiveness
for the period
at Dec. 31,
2024
Interest rate swap (IRS)
1,151
(18)
Derivatives
(18)
Cross currency interest rate swap (CCIRS)
22,094
(115)
Derivatives
(375)
at Dec. 31,
2023
Interest rate swap (IRS)
1,301
(21)
Derivatives
(21)
Cross currency interest rate swap (CCIRS)
21,841
(523)
Derivatives
(513)
The impact of the hedged item on the balance sheet is, as follows:
Millions of Euro
Fair value
used for
measuring
ineffectiveness
Offsetting
effect on
P&L
Cash
flow
hedge
reserve
Cost of
hedging
reserve
Fair value
used for
measuring
ineffectiveness
Offsetting
effect on
P&L
Cash
flow
hedge
reserve
Cost of
hedging
reserve
2024
2023
Floating-rate
borrowings
(5)
-
5
-
(12)
-
12
-
Floating-rate
lendings
23
-
(23)
-
33
-
(33)
-
Floating-rate
lendings in foreign
currencies
73
-
(73)
(1)
113
-
(113)
-
Fixed-rate
borrowings in
foreign currencies
302
130
(432)
261
400
118
(518)
(10)
Total
393
130
(523)
260
534
118
(652)
(10)
The effect of the cash flow hedge in the statement of profit or loss and other comprehensive income is:
68
Millions of Euro
Total
hedging
gain/(loss
)
recognised
in OCI
Ineffectivenes
s recognised in
profit or loss
Line item
in the
statement
of profit
or loss
Cost of
hedging
recognise
d in OCI
Amount
reclassifie
d from OCI
to profit or
loss
Line item in the statement of
profit or loss
at Dec. 31,
2024
Floating-rate
borrowings
5
-
Derivatives
-
-
Financial expense from
derivative
Floating-
rate lendings
(23)
-
Derivatives
-
-
Financial expense from
derivative
Floating-rate
lendings in
foreign
currencies
(73)
-
Derivatives
-
37
Financial expense from derivativ
e
Fixed-rate
borrowings in
foreign
currencies
(432)
-
Derivatives
270
(1,191)
Financial expense from
derivative
at Dec. 31,
2023
Floating-
rate borrowings
12
-
Derivatives
-
-
Financial expense from derivativ
e
Floating-rate
lendings
(33)
-
Derivatives
-
-
Financial expense from
derivative
Floating-rate
lendings in
foreign
currencies
(113)
-
Derivatives
-
(32)
Financial expense from
derivative
Fixed-rate
borrowings in
foreign
currencies
(518)
-
Derivatives
46
477
Financial expense from
derivative
The following table reports the impact of cash flow hedge derivatives on equity during the period, gross of
the fiscal impact:
Millions of
Euro
Cost of
hedgin
g
Gross
changes
in fair
value
recognize
d in equity
Gross
changes in
fair value
transferre
d to
income –
Recycling
Gross changes
in fair value
transferred to
income -
Ineffectivenes
s
Cost of
hedgin
g
Gross
changes
in fair
value
recognize
d in
equity
Gross
changes in
fair value
transferre
d to
income –
Recycling
Gross changes
in fair value
transferred to
income -
Ineffectivenes
s
2024
2023
Interest
rate
hedging
-
4
-
-
-
5
-
-
Exchange
rate
hedging
270
127
-
-
46
(1,064)
-
-
Hedging
derivative
s
270
131
-
-
46
(1,059)
-
-
The amount of effective changes in the fair value of cash flow hedge derivatives, not yet settled,
corresponding to hedges on the exchange rate on hedged items released in order to offset the adjustment
at the spot exchange rate of the hedged assets/liabilities denominated in a foreign currency at the end of
the reporting period totalled to Euro 1,225 million.
69
Derivatives at fair value through profit or loss
The following tables show the notional amount and the fair value of derivatives assets and liabilities at
FVTPL, as at 31 December 2024 and 31 December 2023, classified on the basis of each type of risk, broken
down into current and non-current.
Millions of euro
Non Current
Current
Notional
amount
Fair value
Notional
amount
Fair value
at
Dec.
31,
2024
at
Dec.
31,
2023
at
Dec.
31,
2024
at
Dec.
31,
2023
at
Dec.
31,
2024
at
Dec.
31,
2023
at
Dec.
31,
2024
at
Dec.
31,
2023
DERIVATIVE ASSETS
At fair value through profit or loss
on interest rate risk
473
444
11
11
-
-
-
-
on foreign exchange risk
-
-
-
-
269
906
7
12
Total
473
444
11
11
269
906
7
12
DERIVATIVE LIABILITIES
At fair value through profit or loss
on interest rate risk
473
444
11
11
-
-
-
-
on foreign exchange risk
-
-
-
-
629
596
23
4
Total
473
444
11
11
629
596
23
4
The following table reports expected cash flows related to derivatives for the coming years:
Millions of euro
Fair
value
Distribution of expected cash flows
at Dec.
31,
2024
2025
2026
2027
2028
2029
Beyond
Fair value through profit or loss derivatives on interest
rates:
- Positive fair value
11
9
5
3
-
-
-
- Negative fair value
(11)
(9)
(5)
(3)
-
-
-
Millions of euro
Fair
value
Distribution of expected cash flows
at Dec.
31,
2024
2025
2026
2027
2028
2029
Beyond
Fair value through profit or loss derivatives on exchange
rates:
- Positive fair value
7
7
-
-
-
-
-
- Negative fair value
(23)
(23)
-
-
-
-
-
70
Other notes
18 Related parties
Transactions between Enel Finance International N.V. and other companies of Enel Group involve Financing
and Treasury management.
The main activity of Enel Finance International N.V. is to operate as financing company of the Enel Group,
raising funds through bonds issuance, loans and other facilities and on turn lending the funds so raised to
the companies belonging to Enel Group.
Enel Finance International N.V. is also part of the centralizing financial flow process and acts as the primary
reference for the management of financial needs or liquidity generated by the entities that operate outside
of Italy and are part of Enel Group.
Enel Finance International N.V. has no business relations (except remuneration) with Key management
personnel during the financial year.
The following table summarizes the financial relationships between the Company and its related parties at
31 December 2024 and 31 December 2023 respectively:
71
Millions of euro
Receivables
Payables
Income
Cost
at Dec. 31,
2024
2024
Shareholder
Enel S.p.A
19,315
-
519
66
(Subtotal)
19,315
-
519
66
Other affiliated companies
Ampla Energia E Servicos S.A.
48
-
7
-
Companhia Energetica Do Ceara - Coelce
81
-
11
15
Dolores Wind Sa De Cv
79
-
14
(1)
Dominica Energia Limpia Srl De Cv
53
-
8
8
Egp Magdalena Solar SA de CV
77
-
14
-
Eletropaulo Metropolitana Eletricidade De Sao Paulo S.A.
-
-
1
-
Endesa SA
3,544
7
198
(2)
Enel Americas S.A.
2
2
72
23
Enel Brasil S.A
94
-
5
-
Enel Chile S.A.
1,148
-
159
29
Enel Global Trading Spa IT
200
-
8
-
Enel Green Power Germany Gmbh
3
-
-
-
Enel Green Power Turkey Enerji Yatirimlari Anonim Sirketi
-
1
-
-
Enel Green Power South Africa (Pty) Ltd
76
-
10
2
Enel Green Power Spa GLO
1,460
34
56
24
Enel Iberia SRL
2,674
202
48
3
Enel Investment Holding BV
3
-
1
Enel Italia S.p.A.
18,538
-
891
-
Enel Panama CAM, S.R.L
22
-
4
-
Enel Reinsurance - Compagnia di Riassicurazione S.p.A.
-
33
-
Enel X Korea Limited
5
-
-
-
Enel X S.r.l.
100
-
2
1
Enel X Taiwan Co., Ltd
3
-
-
-
Energia Limpia De Amistad, S.A De C.V.
108
-
17
17
Energia Limpia De Palo Alto, S. De R.L. De C.V.
112
6
17
3
Ngonye Power Company Limited
3
-
1
-
Parque Amistad Ii Sa De Cv
41
-
8
1
Parque Amistad Iii Sa De Cv
42
-
8
1
Parque Amistad Iv Sa De Cv
12
-
3
1
Parque Salitrillos, S.A. de C.V.
69
2
10
-
Parque Solar Don Jose, S.A. De C.V.
26
-
3
-
Parque Solar Villanueva Tres, S.A. De C.V.
44
-
6
-
PH Chucas S.A.
32
-
6
-
Slovak Power Holding B.V.
769
-
72
-
Vientos Del Altiplano, S. De R.L. De C.V.
29
-
4
4
Villanueva Solar, S.A. De C.V.
65
-
9
-
(Subtotal)
29,559
290
1,672
130
Total
48,874
290
2,191
196
72
Millions of euro
Receivables
Payables
Income
Cost
at Dec. 31,
2023
2023
Shareholder
Enel S.p.A
19,766
-
423
68
(Subtotal)
19,766
-
423
68
Other affiliated companies
Ampla Energia E Servicos S.A.
332
-
51
(3)
Companhia Energetica Do Ceara - Coelce
97
-
20
-
Dolores Wind Sa De Cv
78
-
9
7
Dominica Energia Limpia SA de C.V.
58
-
13
-
Egp Magdalena Solar SA de CV
77
-
9
7
Endesa SA
6,554
8
190
1
Enel Americas S.A.
593
-
10
12
Enel Brasil S.A
254
-
17
(2)
Enel Chile Sa
1,222
90
57
Enel Energie Muntenia SA
-
-
8
1
Enel Energie SA
-
-
13
3
Enel Global Trading Spa IT
205
-
21
(2)
Enel Green Power Germany Gmbh
1
-
-
-
Enel Green Power Korea LLC
1
-
-
-
Enel Green Power Mexico S de RL de CV
-
-
18
(2)
Enel Green Power Panama SA
26
-
3
1
Enel Green Power Romania Srl
-
-
1
5
Enel Green Power South Africa Pty
71
-
10
10
Enel Green Power Spa GLO
1,573
48
60
24
Enel Green Power Turkey Enerji Yatirimlari Anonim Sirketi
-
1
1
-
Enel Green Power Vietnam LLC (Cong ty TNHH Enel Green
Power Viet Nam)
1
-
-
-
Enel Iberia SRL
3,027
176
51
4
Enel Insurance NV
-
33
-
-
Enel Investment Holding BV
-
3
-
(2)
Enel Italia S.p.A.
18,548
-
913
1
Enel Trade Energy SRL
-
-
1
-
Enel X Australia Pty Ltd
-
-
1
-
Enel X Germany GmbH
-
1
-
-
Enel X Korea Limited
5
-
-
-
Enel X S.r.l.
101
-
2
-
Enel X Taiwan Co., Ltd
3
-
-
-
Enel X Way Peru S.A.C.
3
-
-
-
Energia Limpia De Amistad, S.A De C.V.
115
-
26
1
Energia Limpia De Palo Alto, SA De C.V.
115
6
10
6
Ngonye Power Company Limited
2
-
1
1
Parque Amistad Ii Sa De Cv
38
-
4
3
Parque Amistad Iii Sa De Cv
41
-
5
4
Parque Amistad Iv Sa De Cv
7
-
2
1
Parque Salitrillos, S.A. de C.V.
67
2
6
4
Parque Solar Don Jose, S.A. De C.V.
22
-
2
1
Parque Solar Villanueva Tres, S.A. De C.V.
37
-
3
2
PH Chucas S.A.
38
-
6
2
73
Principia Energy A.E.
67
-
-
-
S4MA DEVELOPMENTS SPOLKA Z OGRANICZONA
ODPOWIEDZIALNOSCIA
2
-
-
-
Slovak Power Holding B.V.
754
-
70
(1)
Vientos de Altiplano, SA de C.V.
33
-
8
-
Villanueva Solar, S.A. De C.V.
56
-
4
2
(Subtotal)
34,224
278
1,659
148
Total
53,990
278
2,082
216
For further details of the each relation with related parties please refer to notes 6, 9, 14.
The impact of transactions with related parties on the balance sheet and income statement is reported in
the following tables.
Impact on balance sheet
Millions of Euro
Total
Related
parties
% of
total
Total
Related
parties
% of
total
at Dec. 31,
2024
at Dec. 31,
2023
Assets
Long-term loans and financial receivables including current portion
41,485
41,485
100%
45,613
45,613
100%
Derivatives- non-current
1,170
37
3%
845
36
4%
Short-term loans and financial receivables
7,080
7,080
100%
8,018
8,018
100%
Derivatives - current
32
-
-
55
-
-
Other current financial assets
1,281
271
21%
1,337
323
24%
Liabilities
Derivatives- non-current
1,244
34
3%
1,405
44
3%
Other non-current financial liabilities
30
9
30%
33
8
24%
Income tax payable
116
35
30%
82
34
41%
Short-term loans and borrowings
2,635
202
8%
2,762
179
6%
Derivatives - current
118
-
-
76
-
-
Other current financial liabilities
449
9
2%
429
11
3%
Other current liabilities
2
1
50%
1
1
100%
Impact on income statement
Millions of Euro
Total
Related
parties
%
of
total
Total
Related
parties
%
of
total
at Dec. 31,
2024
at Dec. 31,
2023
Interest income
2,044
2,013
98%
2,015
1,994
99%
Interest income from derivatives
294
-
-
269
6
2%
Interest expense
(1,758)
70
-4%
1,597
73
5%
Interest expense from derivatives
(110)
31
-
28%
176
27
15%
Other operating expenses
(4)
1
-
25%
5
1
20%
Financial income on derivatives
1,584
-
-
278
-
-
Other financial income
195
178
91%
657
83
13%
Financial expense on derivatives
(437)
-
-
686
-
-
Other financial expense
(1,342)
94
-7%
265
118
45%
74
19 Contractual commitments and guarantees
The notes issued by the Company under the GMTN programme are guaranteed by Enel S.p.A. Commercial
papers issued in the context of the Euro Commercial Paper Programme launched in 2005 by the
Company are also guaranteed by Enel S.p.A.
More information could be found in the above mentioned programmes.
Furthermore, Enel S.p.A has confirmed their commitment to provide the Company with support until next
year's approval of the financial statements, should the Company remain under control of Enel S.p.A. The
Company has not given guarantees to third parties up to the reporting date.
20 Offsetting financial assets and financial liabilities
At 31 December 2024 and at 31 December 2023, the Company did not hold offset positions in assets and
liabilities, as it is not the Enel policy to settle financial assets and liabilities on a net basis.
21 Compensation of Directors and key management personnel
The emoluments of the Company Directors as intended in Section 2:383 (1) of the Dutch Civil Code, which
were charged in 2024, amounted to Euro 118 thousand (Euro 116 thousand in 2023) represented short-
term employee benefits and summarized in the following table:
Thousands of euro
2024
2023
E. Di Giacomo
29
29
H. Marseille
29
29
A.J.M. Nieuwenhuizen
29
29
W. Parente
2
-
L.B. Van der Heijden
29
29
A. Canta
-
-
Total
118
116
With regards to disclosure of remuneration of key management personnel, provided under IAS 24,
please see the table below:
Thousands of euro
2024
2023
short-term employee benefits
222
216
222
216
22 Fees of the auditors
The independent auditor of the Company is KPMG Accountants N.V. having been appointed by the
shareholders’ meeting of the Company held on 20 May 2020.
With reference to Section 2:382 a (1) and (2) of the Netherlands Civil Code, below a summary is provided
of services performed by KPMG Accountants N.V. and fees for each year accrued as per 31 December in
the respective years.
75
Thousands of euro
at Dec. 31,
2024
at Dec. 31,
2023
Audit
170
104
Audit related services in connection with GMTN prospectus
11
32
Tax
-
-
Other
-
-
Total
181
136
23 Events after the reporting period
12 billion euro committed revolving credit facility
On 19 February 2025 the Company jointly with its parent company Enel S.p.A. signed a committed,
revolving, sustainability-linked credit facility for an amount of 12 billion euros and a maturity of five years.
The Facility is linked to the KPI of “Percentage of CAPEX aligned with the EU taxonomy” in addition to the
achievement of a Sustainability Performance Target (“SPT”) equal to or greater than 80% as of
31 December 2026 for the 2024-2026 period.
This Facility replaces the previous credit line that had been signed in March 2021, and subsequently
amended, with an overall value of 13.5 billion euros.
A triple-tranche 2,000 million-euro Sustainability-Linked Bond
On 17 February 2025 the Company launched a multi-tranche “Sustainability-Linked bond” for institutional
investors in the Eurobond market for a total of 2,000 million euros.
The issue is structured in the following three tranches:
- 750 million euros at a fixed rate of 2.625%, with issuance date set on 24 February 2025, maturing
24 February 2028:
• the issue price has been set at 99.574% and the effective yield at maturity is equal to 2.775%;
• the interest rate will remain unchanged to maturity, subject to the achievement by the Enel Group
of the following Sustainability Performance Targets (“SPTs”). In particular:
o for the KPI related to the “Proportion of CAPEX aligned to the EU Taxonomy (%)”, the achievement
of a SPT equal to or higher than 80% on 31 December 2025 for the 2023-2025 period;
o for the KPI related to the “Scope 1 GHG emissions Intensity relating to Power Generation
(gCO
2eq
/kWh)”, the achievement of a SPT equal to or less than 130gCO
2eq
/kWh on
31 December 2025;
• if one or both of the above mentioned SPTs are not achieved, a step-up mechanism will be applied,
increasing the rate by 25 bps, as of the first interest period subsequent to the publication of the
relevant assurance report issued by an external verifier;
- 750 million euros at a fixed rate of 3.000%, with issuance date set on 24 February 2025, maturing
24 February 2031:
• the issue price has been set at 99.229% and the effective yield at maturity is equal to 3.143%;
• the interest rate will remain unchanged to maturity, subject to the achievement by the Enel Group
of the following SPTs. In particular:
o for the KPI related to the “Proportion of CAPEX aligned to the EU Taxonomy (%)”, the achievement
of a SPT equal to or higher than 80% on 31 December 2027 for the 2025-2027 period;
o for the KPI related to the “Scope 1 GHG emissions Intensity relating to Power Generation
(gCO
2eq
/kWh)”, the achievement of a SPT equal to or less than 115gCO
2eq
/kWh on
31 December 2027;
76
• if one or both of the above mentioned SPTs are not achieved, a step-up mechanism will be applied,
increasing the rate by 25 bps, as of the first interest period subsequent to the publication of the
relevant assurance report issued by an external verifier.
- 500 million euros at a fixed rate of 3.500%, with issuance date set on 24 February 2025, maturing
24 February 2036:
• the issue price has been set at 99.123% and the effective yield at maturity is equal to 3.598%;
• the interest rate will remain unchanged to maturity, subject to the achievement by the Enel Group
of the following SPTs. In particular:
o for the KPI related to the “Scope 1 GHG emissions Intensity relating to Power Generation
(gCO
2eq
/kWh)”, the achievement of a SPT equal to or less than 72gCO
2eq
/kWh on
31 December 2030;
o or the KPI related to the “Renewable Installed Capacity Percentage (%)”, the achievement of a
SPT equal to or higher than 80% on 31 December 2030;
• if one or both of the above mentioned SPTs are not achieved, a step-up mechanism will be applied,
increasing the rate by 25 bps, as of the first interest period subsequent to the publication of the
relevant assurance report issued by an external verifier.
The issue, which has an average duration of approximately 6 years, has an average coupon of 3%.
Amsterdam, 23 April 2025
E. Di Giacomo
A. Canta
H. Marseille
W. Parente (from 1 December 2024)
L.B. Van der Heijden
77
Other information
Provisions in the articles of association governing the appropriation of profit
Under article 16 of the Company’s articles of association, the profit is at the disposal of the General Meeting
of Shareholders, which can allocate said profit either wholly or partly to the formation of – or in addition to
– one or more general or special reserve funds.
The Company can only make distributions to shareholders from profits qualifying for payment insofar as
the shareholders’ equity is greater than the paid-up and called-up part of the capital plus the legally
required reserves.
Report of the independent auditor
on the 2024 financial statements of Enel
Financial International BV
The auditor’s report is set forth on the following page.
KPMG Accountants N.V., a Dutch limited liability company registered with the trade register in the Netherlands under number 33263683, is a member firm of the global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.
3192874-25W00196997AVN
Independent auditor's report
To: the General Meeting of Shareholders of ENEL Finance International N.V. and the Audit
Committee of ENEL S.p.A.
Report on the audit of the financial statements 2024 included in the annual report
Our opinion
In our opinion, the accompanying financial statements give a true and fair view of the financial
position of ENEL Finance International N.V. as at 31 December 2024 and of its result and its
cash flows for the year then ended, in accordance with IFRS Accounting Standards as endorsed
by the European Union (EU-IFRS) and with Part 9 of Book 2 of the Dutch Civil Code.
What we have audited
We have audited the financial statements 2024 of ENEL Finance International N.V. based in
Amsterdam.
The financial statements comprise:
1 the statement of financial position as at 31 December 2024;
2 the following statements for 2024: profit or loss and other comprehensive income, changes in
equity and cash flows; and
3 the notes comprising material accounting policy information and other explanatory
information.
Basis for our opinion
We conducted our audit in accordance with Dutch law, including the Dutch Standards on
Auditing. Our responsibilities under those standards are further described in the ‘Our
responsibilities for the audit of the financial statements’ section of our report.
We are independent of ENEL Finance International N.V. in accordance with the ‘Verordening
inzake de onafhankelijkheid van accountants bij assurance-opdrachten’ (ViO, Code of Ethics for
Professional Accountants, a regulation with respect to independence) and other relevant
independence regulations in the Netherlands. Furthermore, we have complied with the
‘Verordening gedrags- en beroepsregels accountants’ (VGBA, Dutch Code of Ethics).
We designed our audit procedures in the context of our audit of the financial statements as a
whole and in forming our opinion thereon. The information in respect of going concern, fraud and
non-compliance with laws and regulations, climate-related risks and the key audit matters was
addressed in this context, and we do not provide a separate opinion or conclusion on these
matters.
We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
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Information in support of our opinion
Summary
Materiality
• Materiality of EUR 370 million
• 0.75% of Total Assets
Risk of material misstatements related to Fraud, NOCLAR, Going concern and Climate
risks
• Fraud risks: presumed risk of management override of controls identified and further
described in the section ‘Audit response to the risk of fraud and non-compliance with laws
and regulations’.
• Non-compliance with laws and regulations (NOCLAR) risks: no reportable risk of material
misstatements related to NOCLAR risks identified.
• Going concern risks: no going concern risks identified.
• Climate risks: We have considered the impact of climate-related risks on the financial
statements and described our approach and observations in the section ‘Audit response to
climate-related risks’.
Key audit matters
• Recoverability of the long-term and short-term loans and financial receivables due from
ENEL S.p.A. (parent company) and ENEL S.p.A. group companies.
Materiality
Based on our professional judgement, we determined the materiality for the financial statements
as a whole at EUR 370 million (2023: EUR 425 million). The materiality is determined with
reference to 0.75% of total assets (2023: 0.75%). We consider total assets, which mainly include
accounts related to financing activities, as the most appropriate benchmark given the activities of
ENEL Finance International N.V. as a group financing company. We have also taken into
account misstatements and/or possible misstatements that in our opinion are material for the
users of the financial statements for qualitative reasons.
We agreed with the Board of Directors of ENEL Finance International N.V. and the Audit
Committee of the ultimate parent company, ENEL S.p.A., that misstatements identified during
our audit in excess of EUR 18 million would be reported to them, as well as smaller
misstatements that in our view must be reported on qualitative grounds.
Audit response to the risk of fraud and non-compliance with laws and regulations
In the paragraphs “Main risks and uncertainties” and “The Company’s control system” of the
Directors’ report, the Board of Directors describes its procedures in respect of the risk of fraud
and non-compliance with laws and regulations.
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As part of our audit, we have gained insights into the Company and its business environment
and the Company’s risk management in relation to fraud and non-compliance. Our procedures
included, among other things, assessing the Company’s code of conduct, whistleblowing
procedures, and its procedures to investigate indications of possible fraud and non-compliance.
Furthermore, we performed relevant inquiries with management and those charged with
governance. We have also incorporated an element of unpredictability in our audit by performing
an independent valuation of the entire portfolio of foreign exchange derivative instruments, as
part of our procedures addressing estimation uncertainty.
As a result from our risk assessment, we identified the following laws and regulations as those
that may have a material effect on the financial statements in case of non-compliance:
— Anti-bribery and corruption laws and regulations (reflecting the Company’s involvement in the
regulated market);
— Anti-money laundering and terrorist financing laws and regulations (reflecting the Company’s
significant and geographically diverse lending operations).
Further, we assessed the presumed fraud risk on revenue recognition as not significant since the
Company`s sole significant source of income is finance income. Such finance income is derived
from long- and short-term loan agreements with the parent company and the group companies,
including fixed terms and conditions in respect of interest. As a consequence, we did not identify
an incentive nor pressure for the Board of Directors to achieve certain results or specific finance
income targets and there appears to be limited perceived opportunity to commit a material fraud
in this area.
Based on the above and on the auditing standards, we identified the following presumed fraud
risk laid down in the auditing standards in respect of management override of controls that is
relevant to our audit, and responded as follows:
Management override of controls (a presumed risk)
Risk:
Management is in a unique position to manipulate accounting records and prepare fraudulent
financial statements by overriding controls that otherwise appear to be operating effectively, such
as accounting records around the estimate related to the recoverability of loans (principal and
interest) receivable from related parties.
Responses:
— We evaluated the design and the implementation of internal controls that mitigate fraud risks,
such as processes related to journal entries and estimates.
— As part of the fraud risk assessment, we performed a data analysis of the journal entries
population to determine if high-risk criteria for testing applies and evaluated relevant
estimates and judgments for bias by the Company’s management.
— We involved a specialist to challenge the assumptions underlying the fair value of the
derivatives and the valuation assessment of loans and interest receivables from the parent
company and other ENEL S.p.A. group companies. The latter is considered a key audit
matter and we refer for the procedures performed to the key audit matter paragraph below.
— We identified and selected journal entries and other adjustments made at the end of the
reporting period for testing.
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3192874-25W00196997AVN
Our evaluation of procedures performed related to fraud in respect of management override of
controls did not result in an additional key audit matter.
We communicated our risk assessment, audit responses and results to the Company’s Board of
Directors and the Audit Committee of ENEL S.p.A.
Our audit procedures did not reveal indications and/or reasonable suspicion of fraud and non-
compliance that are considered material for our audit.
Audit response to going concern
As explained on page 25 of the financial statements, the Board of Directors has performed its
going concern assessment, in which amongst others the Company’s high dependency on the
parent company’s and group companies’ ability to fulfill their obligations towards the Company
was considered. The Board of Directors has not identified any going concern risks.
To assess the Board of Directors’ assessment, we performed, inter alia, the following
procedures:
— We considered whether the Board of Directors’ assessment of the going concern risks
includes all relevant information of which we are aware as a result of our audit.
— We considered whether (new) strategic decisions and targets, developments in the electricity
industry, the effect of climate-related risks and evolution of recent geopolitical events indicate
a significant going concern risk.
— We inspected the (new) financing agreements in terms of conditions that could lead to
significant going concern risks, including the terms of the agreements.
— We analyzed the Company’s financial position as at year-end, results and cashflow for the
year and compared it to the previous financial year in terms of indicators that could identify
significant going concern risks.
— Considering ENEL S.p.A. is a guarantor for the bonds issued by the Company, through
inspection of the audited consolidated financial statements as of 31 December 2024 of ENEL
S.p.A., we verified the going concern basis of the group as a whole.
— We considered whether the outcome of our audit procedures to determine the recoverability
of the intercompany loans, as described in the key audit matter paragraph below, could
indicate a significant going concern risk.
The outcome of our risk assessment procedures did not give reason to perform additional audit
procedures on the Board of Directors’ going concern assessment.
Audit response to climate-related risks
The Company has set out its commitments relating to climate change in the chapter “Risk and
strategic opportunities associated with climate change” in the Directors’ report. The Company’s
commitments include aligning its financing activities with sustainability targets and integrating
climate-related considerations into its strategy.
The Board of Directors has assessed, at a high level, how climate-related risks and opportunities
throughout the Enel group and the Company’s own commitments could have a significant impact
on its business or could impose the need to adapt its strategy and operations.
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3192874-25W00196997AVN
The Board of Directors has considered the impact of climate-related risks on the financial
statements in accordance with EU-IFRS, more specifically on the potential financial impact of
sustainability-linked financial instruments, as described in the section “Risk and strategic
opportunities associated with climate change” in the Directors’ report. Furthermore, as disclosed
in this paragraph, the Company, in accordance with the group strategy, has already taken
actions to mitigate potential risks and to exploit the opportunities offered by the energy transition.
As part of our audit we performed a risk assessment of the impact of climate-related risk and the
commitments made by the Company in respect of climate change on the financial statements
and our audit approach. In doing this, we performed the following:
— Understanding management's processes: we made inquiries with management, inspected
relevant documentation, and obtained an understanding of management’s assessment of
climate-related risks regarding intercompany receivables and external borrowings. We also
assessed the related disclosures in the financial statements to determine their consistency
with our audit procedures and assessed whether climate-related risks were appropriately
considered in the financial reporting process.
— We have evaluated the existence of climate-related fraud risk factors, and none have been
identified as an event or condition that would indicate a risk of material misstatement in the
financial statements.
Based on the procedures performed above we have identified that climate-related risks have no
material impact on the current financial statements under the requirements of EU-IFRS and no
material impact on our key audit matters.
Furthermore, we have read the Directors’ report with respect to climate-related risks as included
in the annual report and considered whether such information contains material inconsistencies
with the financial statements or our knowledge obtained through the audit, in particular as
described above, and our knowledge obtained otherwise.
Our key audit matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial statements. We have communicated the key audit
matters to the Board of Directors of ENEL Finance International N.V. and the Audit Committee of
ENEL S.p.A. The key audit matters are not a comprehensive reflection of all matters discussed.
Recoverability of the long-term and short-term loans and financial receivables including
current financial accrued income due from ENEL S.p.A. (parent company) and ENEL
S.p.A. (group companies)
Description
As included in note 6, 9 and 10 to the financial statements, the Company’s exposure, in terms
of credit risk, to group companies may have a significant effect on the Company’s financial
statements. The outstanding balance as at 31 December 2024 of EUR 48,900 million
(EUR 54,018 million as at 31 December 2023), long-term and short-term loans and financial
receivables including current financial accrued income, net of the impairment loss allowance of
EUR 52 million (EUR 62 million as at 31 December 2023) represents approx. 95% (2023
approx. 96%) of the total balance sheet.
6
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The Company’s most significant assets are the long-term and short-term loans and financial
receivables due from ENEL S.p.A. and/or the ENEL S.p.A. group companies. In the event that
ENEL S.p.A. and/or group companies can no longer fulfill their financial obligations towards
the Company, this would have a significant impact on the Company. The Company’s ability to
meet its financial obligations depends on the cash flows generated from the repayment of
(accrued) interest and principal by ENEL S.p.A. and/or ENEL S.p.A. group companies. Current
and future developments of the energy market are an example of factors that can impact the
Company’s ability to meet its financial obligations.
The Company records the long-term and short-term loans and financial receivables, net of the
impairment loss allowance, which is done by estimating intercompany Probability of Default
(PD) and Loss Given Default (LGD) on the basis of the creditworthiness of ENEL S.p.A. and/or
ENEL S.p.A. group companies and the applicable market data.
As the long-term and short-term loans and financial receivables from ENEL S.p.A. and/or
ENEL S.p.A. group companies are material to the Company’s balance sheet and given the
related estimation uncertainty on impairment losses, the risk of a financial loss of the Company
is significant when ENEL S.p.A. and/or ENEL S.p.A. group companies fail to meet their
contractual obligations towards the Company. We therefore consider the valuation on the long-
term and short-term loans and financial receivables provided from ENEL S.p.A. and/or ENEL
S.p.A. group companies to be a key audit matter.
Our response
We performed, amongst others, the following procedures with respect to management’s
assessment of the recoverability of the long-term and short-term loans and financial
receivables from ENEL S.p.A. and/or ENEL S.p.A. group companies:
— We evaluated the design and implementation of the controls regarding the valuation
assessment by the Board of Directors in respect of the long-term and short-term loans and
financial receivables.
— We inquired with the Board of Directors of the Company about its assessment of the
valuation of the long-term and short-term loans and financial receivables, based upon its
knowledge of the developments in the financial position and cash flows of ENEL S.p.A.
and/or ENEL S.p.A. group companies considering among others the impact, if any, of the
current and future developments on the energy market, and about its evaluation with
respect to the recoverability of the long-term and short-term loans and financial receivables
from ENEL S.p.A. and/or ENEL S.p.A. group companies.
— We inspected and analyzed ENEL S.p.A.'s financial position by evaluating its audited
consolidated financial statements for the year 2024. Furthermore, we inquired the auditor of
ENEL S.p.A. with respect to the group going concern evaluation.
— We inspected the terms and conditions of the loan agreements between ENEL S.p.A. and
certain ENEL S.p.A. group companies and the Company.
— We involved a specialist in evaluating the reasonableness of the Board of Directors' key
judgements and estimates in relation to Probability of Default (PD) and Loss Given Default
(LGD) made in respect of IFRS 9, including selection of methods, models, assumptions and
data sources.
— We evaluated the long-term credit ratings and outlook of ENEL S.p.A., from Standard &
Poor’s, Fitch and Moody’s.
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3192874-25W00196997AVN
— In addition, we evaluated the appropriateness of the accounting principles applied based on
IFRS 9’s requirements and the adequacy of the Company’s related disclosures as
presented in the notes to the financial statements.
Our observation
The results of our audit procedures relating to the valuation of the long-term and short-term
loans and financial receivables from ENEL S.p.A. and/or ENEL S.p.A. group companies were
satisfactory, and we consider the disclosures relating to credit risk, as included in the credit
risk paragraph on pages 39-41 and Notes 6 and 9 of the financial statements, to be adequate.
Report on the other information included in the annual report
In addition to the financial statements and our auditor’s report thereon, the annual report
contains other information.
Based on the following procedures performed, we conclude that the other information:
• is consistent with the financial statements and does not contain material misstatements; and
• contains the information as required by Part 9 of Book 2 of the Dutch Civil Code for the
management report and other information.
We have read the other information. Based on our knowledge and understanding obtained
through our audit of the financial statements or otherwise, we have considered whether the other
information contains material misstatements.
By performing these procedures, we comply with the requirements of Part 9 of Book 2 of the
Dutch Civil Code and the Dutch Standard 720. The scope of the procedures performed is less
than the scope of those performed in our audit of the financial statements.
The Board of Directors is responsible for the preparation of the other information, including the
information as required by Part 9 of Book 2 of the Dutch Civil Code.
Report on other legal and regulatory requirements and ESEF
Engagement
We were initially appointed by the General Meeting of Shareholders as auditor of ENEL Finance
International N.V. on 20 May 2020, as of the audit for the year 2020 and have operated as
statutory auditor ever since that financial year.
No prohibited non-audit services
We have not provided prohibited non-audit services as referred to in Article 5(1) of the EU
Regulation on specific requirements regarding statutory audits of public-interest entities.
European Single Electronic Format (ESEF)
ENEL Finance International N.V. has prepared its annual report in ESEF. The requirements for
this are set out in the Delegated Regulation (EU) 2019/815 with regard to regulatory technical
standards on the specification of a single electronic reporting format (hereinafter: ‘the RTS on
ESEF’).
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In our opinion the annual report prepared in XHTML-format, including the financial statements of
ENEL Finance International N.V., has been prepared in all material respects in accordance with
the RTS on ESEF.
The Board of Directors is responsible for preparing the annual financial report, including the
financial statements, in accordance with the RTS on ESEF.
Our responsibility is to obtain reasonable assurance for our opinion whether the annual financial
report is in accordance with the RTS on ESEF. We performed our examination in accordance
with Dutch law, including Dutch Standard 3950N ’Assurance-opdrachten inzake het voldoen aan
de criteria voor het opstellen van een digitaal verantwoordingsdocument’ (assurance
engagements relating to compliance with criteria for digital reporting). Our examination included
amongst others:
• Obtaining an understanding of the entity's financial reporting process, including the
preparation of the annual financial report in XHTML-format.
• Identifying and assessing the risks that the annual report does not comply in all material
respects with the RTS on ESEF and designing and performing further assurance procedures
responsive to those risks to provide a basis for our opinion, including examining whether the
annual financial report in XHTML-format is in accordance with the RTS on ESEF.
Description of responsibilities regarding the financial statements
Responsibilities of the Board of Directors of ENEL Finance International N.V. and
the Audit Committee of ENEL S.p.A. for the financial statements
The Board of Directors is responsible for the preparation and fair presentation of the financial
statements in accordance with EU-IFRS and Part 9 of Book 2 of the Dutch Civil Code.
Furthermore, the Board of Directors is responsible for such internal control as management
determines is necessary to enable the preparation of the financial statements that are free from
material misstatement, whether due to fraud or error. In that respect the Board of Directors,
under supervision of the Audit Committee of ENEL S.p.A., is responsible for the prevention and
detection of fraud and non-compliance with laws and regulations, including determining
measures to resolve the consequences of it and to prevent recurrence.
As part of the preparation of the financial statements, the Board of Directors is responsible for
assessing the Company’s ability to continue as a going concern. Based on the financial reporting
frameworks mentioned, the Board of Directors should prepare the financial statements using the
going concern basis of accounting unless the Board of Directors either intends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors should disclose events and circumstances that may cast significant doubt
on the Company’s ability to continue as a going concern in the financial statements.
The Audit Committee of ENEL S.p.A. is responsible for overseeing the Company’s financial
reporting process.
Our responsibilities for the audit of the financial statements
Our objective is to plan and perform the audit engagement in a manner that allows us to obtain
sufficient and appropriate audit evidence for our opinion.
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3192874-25W00196997AVN
Our audit has been performed with a high, but not absolute, level of assurance, which means we
may not detect all material errors and fraud during our audit.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements. The materiality affects the nature, timing and
extent of our audit procedures and the evaluation of the effect of identified misstatements on our
opinion.
A further description of our responsibilities for the audit of the financial statements is located at
the website of de ‘Koninklijke Nederlandse Beroepsorganisatie van Accountants’ (NBA, Royal
Netherlands Institute of Chartered Accountants) at www.nba.nl/eng_oob_20241203.
This
description forms part of our auditor’s report.
Amstelveen, 23 April 2025
KPMG Accountants N.V
L.M.A. van Opzeeland RA
