On January 11th, 2011, FADE, the Spanish Electricity Deficit Amortisation Fund, launched its inaugural bond issuance explicitly guaranteed by the Kingdom of Spain. This first tranche which amounts to €2 billion matures on March 17th, 2014, pays a coupon of 4.80% and was priced at a spread of 290bps over the mid-swap interpolated rates. The amount will be received by FADE on January 25th, 2011.

EDP, through its 96.86% held Spanish subsidiary Hidroeléctrica Del Cantábrico S.A. ("HC Energia"), shall receive around €102.5 million, which corresponds to 6% of the amount received by FADE excluding amount that corresponds to extra-peninsular tariff deficit. 

EDP – Energias de Portugal, S.A.