towards the end of the year. In any case, it is under-
stood that when rates are higher the economy is
generally in a stronger position and capable of support-
ing more air travel. This, in turn, would result in a better
operating cash flow which the company could then
use to pay the higher interest rates. We would also
point out that, at the moment, the tendency is to
penalise all-in-cost loans by increasing both the
spreads on these and the commissions charged,
something which appears to affect all types of interest
rates.
As most of the Group’s debt is held by the EIB, which
fixes interest rates without the addition of any other
charges, the Group will make use of this option when-
ever it proves possible to do so, with rates for nine
tranches being set over the course of 2012, represent-
ing to date a total of 45.5 million euros.
In fixing interest rates for non-EIB loans, the Group will
make use of hedge instruments that comply with the
requirements of IAS 39.
Under IAS 39, the volatility associated with calculating
the fair value of interest rate risk hedging instruments
which are not IAS compliant has a significant impact on
the stability of the financial results. In attempting to
ensure that there were no factors outside the control
of the management that could influence the financial
results, as of 31 December 2012, there was only one
financial derivative in place. This instrument, which
related to a debt of 26 million euros, was considered
IAS compliant and offers a hedging effectiveness of
100%.
Given that it operates a capital-intensive business, the
Group has always sought financing solutions that offer
the greatest possible stability of the capital itself.
In 2009, ANA, S.A. issued 100 million euros worth
of bonds with a 4 year maturity and also signed a 72
million euro 24-year loan contract with the EIB. These
two contracts have backed the co-financing of the
current investment projects at Lisbon, Faro and Ponta
Delgada airports.
As of 31 December 2012, the short-term remuner-
ated liabilities item referred to loan repayments to be
made up to the end of 2013.
The guarantees issued by the ANA Group are all loan
guarantees contracted with commercial banks. The
larger of these are to guarantee ANA, S.A.’s loans with
the EIB.
ANA, S.A. has managed to minimize the use of debt
capital required to cover its annual and multiannual
investment programmes by using self-financing methods
wherever possible and adopting a proactive policy in
seeking out community support funds.
At the end of the year, the structure of the capital
employed in the Group was as below.
• Equity capital: 407,248 thousand euros
• Debt capital: 581,314 thousand euros
This gives a D/E ratio of 1.6.
ANNUAL REPORT ‘12
ECONOMIC AND FINANCIAL ANALYSIS
111
