Discover the Acea Group online 2019 Consolidated Report

Significant events occurring after the end of the financial year

Acea SpA Successfully placed a nine-year € 500 million bond issued under the EMTN Programme

Following the Board of Directors' resolution of 22 January 2020 and the completion of bookbuilding, on 29 January 2020 it successfully completed the placement of a non-convertible bond loan for a total principal amount of € 500 million, maturing on 6 April 2029 and at a rate of 0.50%, under the € 4 billion Euro Medium Term Notes (EMTN) programme, with the Base Prospectus as last updated on 15 July 2019 and subsequently supplemented on 27 January 2020 (the "Bonds").

The Bonds are intended exclusively for institutional investors in the Euromarket. The issue was successful, receiving requests equal to about 3 times the amount of the Bonds offered, by investors of primary rank and representative of many geographical areas.

The Bonds have a minimum unit denomination of € 100,000 and have been placed at an issue price of 99.20%, which implies a yield of 0.59%. The Bonds are governed by English law. The settlement date was set at 6 February 2020. From that date the Bonds will be listed on the regulated market of the Luxembourg Stock Exchange, where the prospectus was filed.

The proceeds from the issue of the Bonds will be used to finance the Company's ordinary activities, as well as to support the investments envisaged in the business plan for the three-year period 2020-2022.

Covid -19

The international health emergency caused by Covid-19, commonly referred to as "Coronavirus", emerged suddenly after 31 December 2019 and only recently the World Health Organisation has declared the existence of an international emergency.

This has led the Italian government in particular to put in place a series of provisions that are both restrictive and of an emergency economic nature, the duration of which is impossible to predict at this time. In view of the circumstances, it is impossible to calculate the real impact these measures will have on the economy and the Group itself.

However, in view of the fact that the characteristics of the businesses managed by the Acea Group, 81% of whose EBITDA is generated by regulated activities, and in light of the chronology of events and news after the balance sheet date, the regulatory areas governing the Acea Group's businesses have not changed significantly due to the aforementioned health emergency.

However, it is believed that cash inflows may decline in the short and medium term, although it is hoped that equalisation mechanisms will be put in place to support the customer segments most exposed to the effects of the emergency.

In accordance with IAS 10, the potential impacts that could affect the quality of receivables as a result of the aforementioned possible reduction in collections are considered events pertaining to the following year, and therefore have not been reflected in the valuations when preparing the 2019 Financial Statements.

With regard to the financial impact both in the short and medium term, there are no significant uncertainties for the Acea Group in dealing with the "coronavirus" emergency and the effects that this could reasonably cause, also because of the company's ability to continue to operate as a going concern thanks to the Group's solid financial structure as at 31 December 2019, cash and cash equivalents of approximately € 836 million plus credit lines granted and unused of approximately € 628 million and the possibility of issuing a further € 1.4 billion of corporate bonds under the EMTN programme.