Debt management
To ensure its financial structure fits with its business objectives, Snam Rete Gas has diversified the composition and maturity of its debt.
In this regard the debt structure of Snam Rete Gas by type of interest rate and maturity as at 31 December 2009 is as follows:
Overall debt: € 9,986 m
Average cost of debt for financial year 2009: 2.9%
Average duration of loans M/L term: approx. 4 years
| 2007 | 2008 | 2009 | |
|---|---|---|---|
| FIXED RATE | 4.06% | 4.11% | 4.3% |
| FOATING RATE | 4.10% | 4.26% | 1.03% |
| AVERAGE COST OF DEBT | 4.08% | 4.18% | 2.91% |
The floating interest rates are mainly indexed on the Euribor (Europe Interbank Offered Rate). The quota of fixed rate loans is also obtained through the use of derivative instruments, in particular Interest Rate Swaps (IRS). Snam Rete Gas neither stipulates derivative contracts for negotiation nor holds derivative contracts for speculative purposes.
Snam Rete Gas is entirely financed through its parent company, Eni S.p.A. (S&P/Moody’s rating: A+/Aa2). All finance operations are regulated according to market conditions, i.e. the conditions that would apply to two independent parties, and are conducted in the interest of Snam Rete Gas.
