CONSOLIDATED FINANCIAL STATEMENTS >
EXPLANATORY NOTES
182
| 2013 ANNUAL REPORT | PRYSMIAN GROUP
The Prysmian Group entered into no new interest rate swaps
during 2013.
The early repayment of the Credit Agreement 2010 has led
to the discontinued effectiveness of the related cash flow
hedges outstanding as at the date of repayment. The notional
value of these now ineffective interest rate swaps amounted
to Euro 300 million, maturing on 31 December 2014.
Interest rate swaps have a notional value of Euro 680 million
at 31 December 2013 (unchanged compared with 31 December
2012), of which Euro 380 million in derivatives designated
as cash flow hedges (Euro 680 million at 31 December 2012).
Such financial instruments convert the variable component of
interest rates on loans received into a fixed rate of between
1.1% and 3.7%.
Forward currency contracts have a notional value of Euro
2,332 million at 31 December 2013 (Euro 1,971 million at 31
December 2012); total notional value at 31 December 2013
includes Euro 691 million in derivatives designated as cash
flow hedges (Euro 728 million at 31 December 2012).
At 31 December 2013, like at 31 December 2012, almost all
the derivative contracts had been entered into with major
financial institutions.
Metal derivatives have a notional value of Euro 482 million at
31 December 2013 (Euro 614 million at 31 December 2012).
The following tables show the impact of offsetting assets
and liabilities for derivative instruments, done on the basis of
master netting arrangements (ISDA and similar agreements).
They also show the effect of potential offsetting in the event
of currently unforeseen default events:
(in millions of Euro)
31 December 2013
Gross derivatives
Amounts offset
Derivatives
Amounts not
Net derivatives
recognised in
offset (*)
statement of
financial position
Assets
Forward currency contracts
19
-
19
(7)
12
Interest rate swaps
-
-
-
-
-
Metal derivatives
6
-
6
(3)
3
Total assets
25
-
25
(10)
15
Liabilities
Forward currency contracts
12
-
12
(7)
5
Interest rate swaps
18
-
18
-
18
Metal derivatives
19
-
19
(3)
16
Total liabilities
49
-
49
(10)
39
(in millions of Euro)
31 December 2012
Gross derivatives
Amounts offset
Derivatives
Amounts not
Net derivatives
recognised in
offset (*)
statement of
financial position
Assets
Forward currency contracts
15
-
15
(8)
7
Interest rate swaps
-
-
-
-
-
Metal derivatives
4
-
4
(3)
1
Total assets
19
-
19
(11)
8
Liabilities
Forward currency contracts
21
-
21
(8)
13
Interest rate swaps
35
-
35
-
35
Metal derivatives
9
-
9
(3)
6
Total liabilities
65
-
65
(11)
54
(*) Derivatives potentially offsettable in the event of default events under master agreements.
