Annual Report 2017 Enovos Luxembourg S.A.

56 57 Part I Our Mission 6 Part II Our Achievements 14 Part III Annual Accounts 22 Annual Report 2017 Enovos Luxembourg Within the framework of the sales process of photovoltaic installations held by Aveleos S.A., Enovos Luxembourg S.A. provided parent company guaran- tees amounting to EUR 23,312,900 to hold the buyer harmless from contingent liabilities. A provision of EUR 8,600,000 has been posted in 2017 to cover the risks on part of these guarantees, Enovos Solar Investment I S.r.l. Unipersonale has outstanding operating lease obligations for a total amount of EUR 12,296,850 (2016: EUR 13,346,886) matur- ing in 2029. All leasing obligations are guaranteed by a comfort letter issued by Enovos Luxembourg S.A. Enovos Luxembourg S.A. has entered into an interest rate swap agreement in order to hedge its floating rate exposure from a loan it had received from Encevo S.A. to refinance Enovos Solar Investment II S.r.l. Unipersonale. As of 31 st of December 2017, the notional amount equals EUR 15,304,510 (2016: EUR 16,523,281) with a negative fair value of EUR -1,476,500. Bank and parent company commitments By order of Enovos Luxembourg S.A., the Company’s core banks have issued a number of bank guarantees to its suppliers, in the context of its regular business, totalling EUR 12,311,864 (2016: EUR 10,563,863). In the context of the on-going litigation in Italy, Enovos Luxembourg S.A. ordered a bank guarantee for the account of Enovos Solar Investments II S.r.l. Unipersonale amounting to EUR 7,494,558 for the benefit of the Italian authorities. In addition, Encevo S.A. provided Enovos Luxembourg S.A. with a total amount of EUR 140,000,000 in parent company guarantees and letters of comfort, mainly as collateral under existing EFET and ISDA agreements. Other off balance guarantees For the electricity and gas trades, Enovos Luxembourg S.A. has received from counterparties parental support letters totalling EUR 85,000,000 (2016: EUR 70,150,000). Note 23 – Subsequent events In January 2018, La Benâte Energies S.à r.l. and Ferme Eolienne de la côte du Gibet S.à r.l. have been sold for a total amount of EUR 5,616,950. A value adjustment of EUR 1,700,000 has been reversed in 2017. In 2018, a gain on sale of EUR 1,698,849 will be recognised on that transaction. In December 2017, the company decided to liquidate Learning Factory S.A. in 2018. The entity has been completely depreciated in 2017. There are no further subsequent sheet events affecting the 2017 annual accounts.