Significant events during the period

Moody’s changes ACEA's outlook from “Negative” to “Stable”

On 18 February 2014 Moody’s reported that it had changed ACEA SpA's outlook from “Negative” to “Stable” confirming a “Baa2” rating.

The rating review followed the modification of the outlook on the sovereign debt of the Government of the Republic of Italy, on the basis of a decision recently taken by Moody’s.

The change in outlook is also due to: (i) the Company's results in the second half of 2013 in terms of improvements to the financial structure and liquidity profile, as well as the issue on 5 September 2013 of a 600.0 million euros bond; (ii) the positive developments of the water regulatory framework.

Bond issue programme

On 10 March 2014 the Board of Directors approved the adoption of a bond issues programme (Euro Medium Term Note Programme) up to a maximum amount of 1.5 billion euros over a five-year term. The EMTN adoption is aimed at refinancing a number of maturing bonds and loans, with a view to reducing financial costs and lengthening the average maturity of debt.

Fitch Ratings changes ACEA SpA's outlook from “Negative” to “Stable” confirming a “BBB+” rating

On 29 May 2014, Fitch Ratings announced that it had changed ACEA's outlook from "Negative" to "Stable", confirming the "BBB+" for the Long-Term Issuer Default Rating (IDR) and the Senior unsecured rating and the "F2" for the Short-Term IDR.

The agency explained the revised outlook as follows: (i) positive evolution of the water regulatory framework, (ii) results achieved by the Company over the last twelve months, (iii) increased long-term visibility on the development of the businesses, the dividend policy and the Group financial goals, following the approval of the 2014-2018 Strategic Plan.

ACEA S.p.a.  - Shareholders’ Meeting

On 5 June 2014 the shareholders' meeting approved the 2013 financial statements and the distribution of a dividend of 0.42 euros per share, of which 0.25 euros were already distributed as interim dividend.

With regard to the composition of the Board of Directors, the shareholders' meeting set the number of members at seven, appointed the new Board that will remain in office for three years, until approval of the financial statements for 2016, and defined the Directors' remuneration.

ACEA S.p.a. – Appointment of the Chief Executive Officer

On 9 June 2014, the Board of Directors appointed Alberto Irace as Chief Executive Officer of the Company. The Board of Directors also approved the powers assigned to the various roles. The Chairman Catia Tomasetti was assigned the institutional duty of representing the Company, convening and presiding over the Board of Directors' meetings, as well as responsibility for External Relations and Communication, Institutional Affairs, Audit and Secretary Office functions.

In line with the previous system, the CEO was granted all the powers related to the ordinary management of the Company and the Group.

The Board of Directors also confirmed Franco Balsamo as Executive Responsible for Financial Reporting.

ACEA S.p.A. – Appointment of Internal Committees Members

On 2 July 2014, the Board of Directors of ACEA S.p.A., chaired by Catia Tomasetti, appointed the members of the following internal committees:

  • Audit and Risk Committee (Elisabetta Maggini, Paola Antonia Profeta, Giovanni Giani)
  • Related Party Transactions Committee (Diane d’Arras, Elisabetta Maggini, Paola Antonia Profeta)
  • Appointment and Remuneration Committee (Elisabetta Maggini, Paola Antonia Profeta, Giovanni Giani)
  • Ethics Committee (Paola Antonia Profeta, Francesco Caltagirone, Elisabetta Maggini).

Placement of 600 million euros bond issued under the EMTN programme

On 8 July 2014, ACEA completed the placement of a fixed rate bond issue for a total amount of 600 million euros, with 10 year maturity under the Euro Medium Term Notes (EMTN) programme of 1.5 billion euros approved by the Board of Directors on 10 March 2014.

The bond issue is aimed at refinancing a number of maturing bonds and loans, with a view to reducing financial costs and lengthening the average maturity of debt.

The bond issue is intended solely for institutional investors in the Euromarket.

ACEA: 200 million euros from the European Investment Bank (EIB) to boost the water service in Rome and Lazio. Total planned investments of 680 million

On 4 August 2014, ACEA and the EIB signed an agreement providing for a 200 million euros loan intended to cover a significant portion of ACEA's planned investments over the next four years - totalling 680 million euros - which are aimed at boosting and strengthening the infrastructure of the integrated water service of the Ato2 Central Lazio (Rome and province of Rome). The list of projects financed by the EIB - approximately 30 large and small projects - includes in particular the construction of new plants or the renovation of existing ones for the extraction and treatment of water, the protection of water sources, construction and upgrading of reservoirs, the strengthening of the interconnection between water systems, the improvement of water resources' quality and safety, the expansion or renovation of the water and sewer networks, the upgrading and renovation of wastewater treatment plants.