Municipal credit assignment operation agreed with the EIB

The AdP – Águas de Portugal Group has now finalised a credit assignment operation with the EIB – the European Investment Bank for a total amount of 41.7 million euros stemming from debts owed by municipalities to Group companies that were securitised under the regulation agreements signed in 2019 under the auspices of the legal regime established by the State Budget Law for 2019 and Decree Law no. 5/2019, of 14 January.

The aforementioned operation, which was reached on 15 September, involves 18 municipalities and the following Group companies: Águas do Norte, Águas do Centro Litoral, Águas do Vale do Tejo and AgdA - Águas Públicas do Alentejo.

Following this assignment of credits, the AdP Group gains an approximate 11% reduction in the amount of outstanding client debts while also generating the funding that enables the various companies to boost their financial position and invest in the water supply and sanitation infrastructures that will enable the strengthening of the reliability of the services they provide as well as raising the Group’s level of 100% renewable energy production as planned for under the ongoing ZERO Program that is aiming to achieve energy neutrality in 2030.

The credit assignment operation also brings benefits to the participating municipalities given they are now able to access more favourable interest rates as a result of the conditions provided by the EIB in conjunction with the maintenance of the terms established in the assignment agreements, such as expanding the payment periods through to 25 years and reductions to the amounts of accrued interest.

This credit operation took place under the auspices of the Framework-Agreement that the AdP Companies reached with the EIB to establish a financial instrument to offset the payment difficulties encountered by local government authorities and the other entities managing municipal water supply and urban wastewater sanitation systems and that foresees a surplus of 160 million euros that may be applied to reaching similar agreements with other municipalities.

16 of September of 2020