Annual Report

of Enel Finance International N.V. at 31 December 2020

Contents

Director's report

3

Financial statements for the year ended 31 December 2020

17

Statement of comprehensive income

18

Statement of financial position

19

Statement of changes in equity

20

Statement of cash flows

21

Notes to the financial statements

22

Other information

79

Report of the independent auditor

80

2

Director's report

General information

The Management of the Company hereby presents its financial statements for the financial year ended on 31 December 2020.

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 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 2020

Financial assets sale and new loan to Enel Italia S.p.A.

In January 2020 in several loans initially granted to Enel S.p.A. from the Company, the lender was substituted to Enel Italia S.p.A- sub-holding company under direct control of Enel S.p.A. . The transaction was executed as a result of spin-off of business unit , aiming to separate the resources dedicated to the management of the various Italian businesses from the global functions and foreign investments.

On 20 April 2020 the Company sold the long-term loans granted to E-Distribuzione S.p.A, Enel Produzione S.p.A and Enel Sole S.p.A. with outstanding nominal value of Euro 7,600 million to Enel Italia S.p.A. Cash consideration of the deal totaled to Euro 706 million.

At the same date a new long-term loan was granted to Enel Italia S.p.A with the total amount up to Euro 6,500 million.

The first "Sustainability-Linked bond "on the sterling market

On 13 October 2020 the Company launched a single-tranche "sustainable" bond for institutional investors on the sterling market totaling 500 million pounds sterling, equivalent to about 548 million euros.

This bond issue, the first of its kind on the sterling market, is intended to meet the Enel's ordinary financing needs and follows the adoption by Enel of a "Sustainability-Linked Financing Framework" ("Framework"), that presents the whole Sustainability-Linked financing strategy across multiple funding solutions (commercial papers, loans and bonds), fully integrating sustainability into the Group's global funding program. The Framework is aligned with the International Capital Market Association's (ICMA) "Sustainability-Linked Bond Principles" and Loan Market Association's (LMA) "Sustainability-Linked Loan Principles", as verified by the Second-Party Provider Vigeo Eiris.

In line with the Framework, the bond is linked to the Key Performance Indicator (KPI) of "Renewable Installed Capacity Percentage" (i.e., the percentage of consolidated renewable installed capacity on

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total consolidated installed capacity) and to the related achievement of a Sustainability Performance Target ("SPT") equal to or greater than 60% by 31 December 2022 (as of 30 June 2020, the figure was equal to 51.9%). To ensure the transparency of the results, the achievement of the target will be certified by a specific assurance report issued by an external auditor engaged for this purpose.

The issuance has been structured as a single tranche issue of 500 million pounds sterling paying an internal rate of 1.000% maturing 20 October 2027. The issue price has been set at 99.747% and the effective yield at maturity is equal to 1.038%. The settlement and consequent recognition date for the issue is 20 October 2020.

The interest rate will remain unchanged to maturity subject to achievement of the SPT indicated above as of 31 December 2022. If per that date the target is 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 assurance report of the auditor (the first interest period is expected to be 20 October 2023).

The bond reflects the commitment of Enel, leading private electricity company in the world by renewable installed capacity, to contribute to the achievement of SDG 7.2, i.e. "Increase substantially the share of renewable energy in the global energy mix by 2030".

Alongside the issue, Enel has signed a new and innovative "Sustainability-Linked Cross Currency Swap" with a bank, to be hedged against the pound sterling-euro exchange rate and interest rate risk. The unique feature of this derivative instrument is the commitment of both counterparties to achieve specific and ambitious SPTs, with a discount in the cost of the transaction based on the ability of each counterparty to meet its respective SPT.

Lending Operations

During the reporting year the Company has resolved to enter as lender into several new intercompany financial agreements to support mainly the growth of the investments in the renewable energy sector.

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.

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Enel S.p.A. published this content on 30 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2021 08:27:05 UTC.