Net Financial Debt

(from Note 18 "Non - recurrent financial liabilities", Consolidated Financial Statement as at 31 December 2016)
                                                                                      31/12/2016 31/12/2015
Medium/long term mortgages and loans            
  - Current portion of medium/longterm loans
  668,439 694,573
Medium/long term project financing 
 - Current portion of project financing
  1,123,674 1,139,860
Other medium/long-term financial payables 141,947 153,396
Total 1,934,060 1,987,829

Medium/long-term mortgages and loans
Mortgages and loans at 31 December 2016 totalled EUR 668.4 million (EUR 694.6 million at 31 December 2015), and they refer to:
• a corporate acquisition loan of EUR 350 million, subscribed by seven mandated Italian and foreign lead arrangers and bookrunners concerning the acquisition of the entire hydroelectric business belonging to E.ON Produzione, now ERG Hydro S.r.l.;
• three bilateral corporate loans with Mediobanca S.p.A. (EUR 150 million) and UBI Banca S.p.A. (EUR 100 million) concluded in the first half of 2016 to refinance the short-term portion of the corporate acquisition loan concluded for the acquisition of ERG Hydro S.r.l. and with UniCredit S.p.A. (EUR 75 million) the project loan for the wind farm at Corni (Romania).

The loans are presented net of commission costs and other ancillary charges totalling EUR 9.7 million. These costs were recognised according to the amortised cost method in application of IAS 39 against an amount of EUR 3.1 million.

Medium - long term project financing

The following tables show the main characteristics of existing Project Financing at 31 December 2016:

On November 4, 2015 EW Orneta 2, 100% controlled by ERG Renew S.p.A., entered into a loan agreement under Project Financing for its wind farm located in Poland in the municipality of Radziejow. The plant went into production at the beginning of the third quarter 2015, having an installed capacity of 40 MW.
The loan, amounting to a total of 177.5 million Zlotys (approximately 42 million Euro) and a term of 14 years, was was entered into with Mandated Lead Arrangers, ING Bank, ING Bank Slaski and Bank Pekao (part of the UniCredit Group). ING Bank Slaski also acts in its capacity as Agent Bank and Bank Pekao also in its capacity as Account Bank.

As of 31 December 2015 the average weighted interest rate of the mortgages, loans and project financing was 1.52% (1.86% as of 31 December 2014). The indicated rate does not account for coverage transactions on interest rates.

The maturity dates, by year, for the existing medium-long term bank debts are as follows:

                                                               Loans and Financing operations Project Financing
By the end of 31.12.2016 144,718
By the end of 31.12.2017 350,000 122,817
By the end of 31.12.2018 58,625 162,743
By the end of 31.12.2019 117,250 148,396
By the end of 31.12.2020 168,698 153,
Beyond of 31.12.2020 607,429
Total 694,573 1,284,578


                                                                 31/12/2015 31/12/2014
Covered by owned tangible assets
with expiration dates up to December 2026
1,284,578 1,297,324
Not covered 
with expiration dates up to August 2020
694,573 13,583
Total 1,979,151 1,310,907


Refer to Note 26 for a comment on Covenants and negative pledges related to bank debts.