22 Long-term financial liabilities and short-term portions of long-term liabilities

Based on the table used in the Directors’ report, net financial debt can be broken down as follows:

Long-term financial liabilities

Long-term financial liabilities, including the short-term portions, of €8,412 million (€8,506 million at 31 December 2010) comprise:

The breakdown of financial liabilities with parents, including the short-term portions, (€8,412 million) is as follows:

At 31 December 2011 the revolving credit lines were fully drawn (the same as at 31 December 2010). There were no breaches of loan agreements at the reporting date.

Snam has entered into a €300 million loan agreement with Eni funded by the European Investment Bank (EIB), which is based on Eni maintaining a minimum rating. This condition has been met.

Long-term financial liabilities, including the short-term portions, are indicated below with their respective maturities:

Long-term financial liabilities, including the short-term portions, are broken down below with an indication of the related average rate for the period. All financial liabilities are denominated in Euros.

The breakdown of long-term financial liabilities by type of interest rate is as follows:

Decree Law No. 1 of 20 January 2012 was published on the Gazzetta Ufficiale of 24 January 2012, authorising “Urgent arrangements for competition, development of infrastructures and competitiveness”. Specifically, Article 15 “Arrangements on the subject of ownership unbundling” established that the Prime-Ministerial Decree pursuant to Article 1, paragraph 905 of Law No. 296 of 27 December 2006 relating to the implementation of ownership unbundling between Eni and Snam, will be issued within six months of the above-mentioned Decree Law coming into force.

In the case of a change of control at Snam by Eni S.p.A., existing agreements between the companies give Eni S.p.A. the right to extinguish the credit lines granted early. At present, Snam believes that cash flows from operations and its current financial and capital structure can reasonably allow access to a wide range of financing from the capital market and banks. However, there are no guarantees that Snam would be capable of obtaining loans and financing from other sources under the same conditions as current ones.

Below are details on net financial debt showing related-party transactions: