10 Financial assets available for sale
| (€ million) | December 31, 2017 | December 31, 2016 | ||||||
| Securities held for non-operating purposes | ||||||||
| Quoted bonds issued by sovereign states | 190 | 210 | ||||||
| Quoted securities issued by financial institutions | 17 | 28 | ||||||
| 207 | 238 | |||||||
The breakdown by currency is provided below:
| (€ million) | December 31, 2017 | December 31, 2016 | ||||||
| Euro | 176 | 199 | ||||||
| U.S. Dollar | 31 | 39 | ||||||
| 207 | 238 | |||||||
At December 31, 2017, bonds issued by sovereign states amounted to €190 million (€210 million at December 31, 2016). The breakdown is presented below:
|
Nominal value (€ million) |
Fair Value (€ million) |
Nominal rate of return (%) |
Maturity date |
Rating – Moody’s |
Rating – S&P | |||||||||||
| Fixed rate bonds | ||||||||||||||||
| Belgium | 27 | 30 | from 3.75 to 4.25 | from 2019 to 2021 | Aa3 | AA | ||||||||||
| Spain | 25 | 27 | from 1.40 to 5.50 | from 2018 to 2021 | Baa2 | BBB+ | ||||||||||
| France | 17 | 19 | from 1.00 to 3.25 | from 2018 to 2023 | Aa2 | AA | ||||||||||
| Poland | 15 | 18 | from 4.50 to 6.38 | from 2019 to 2022 | A2 | BBB+ | ||||||||||
| Ireland | 17 | 18 | from 0.80 to 4.50 | from 2019 to 2022 | A2 | A+ | ||||||||||
| Iceland | 14 | 15 | from 2.50 to 5.88 | from 2020 to 2022 | A3 | A | ||||||||||
| Italy | 14 | 15 | from 0,65 to 3,50 | from 2018 to 2020 | Baa2 | BBB | ||||||||||
| Portugal | 7 | 8 | 4.75 | 2019 | Ba1 | BBB- | ||||||||||
| Czech Republic | 7 | 8 | 3.63 | 2021 | A1 | AA- | ||||||||||
| Slovenia | 8 | 8 | 2.25 | 2022 | Baa1 | A+ | ||||||||||
| Slovakia | 7 | 7 | 1.50 | 2018 | A2 | A+ | ||||||||||
| United States of America | 6 | 6 | from 1.25 to 3.13 | from 2019 to 2020 | Aaa | AA+ | ||||||||||
| Canada | 5 | 5 | 1.63 | 2019 | Aaa | AAA | ||||||||||
| Finland | 5 | 5 | 1.75 | 2019 | Aa1 | AA+ | ||||||||||
| Netherlands | 1 | 1 | 4.00 | 2018 | Aaa | AAA | ||||||||||
| Total | 175 | 190 | ||||||||||||||
Quoted securities amounting to €17 million (€28 million at December 31, 2016) were issued by financial institutions with a rating from Aaa to Aa1 (Moody’s) and from AAA to AA+ (S&P).
The Group’s insurance company Eni Insurance DAC held securities of €207 million at the balance sheet date (€238 million at December 31, 2016). From 2016, European insurance companies have been waived from retaining certain amounts of financial assets to fund the loss provisions based on new capital and solvency requirements enacted by the EU Solvency II Directive. Therefore, those securities are no longer held for operating purposes and are part of the Group liquidity reserve.
The effects of fair value measurement of securities are set out below:
| (€ million) | Fair value |
Deferred tax liabilities |
Other reserves of shareholders' equity | |||||||||
| Carrying amount at December 31, 2016 | 5 | (1 | ) | 4 | ||||||||
| Changes recognized in equity | (5 | ) | 1 | (4 | ) | |||||||
| Carrying amount at December 31, 2017 | ||||||||||||
The fair value was determined based on market quotations. The fair value hierarchy is level 1.