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Financial Strategy

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The Telecom Italia Group constantly maintains a solid liquidity margin allowing the coverage of the expected financial requirements, including complete coverage of debt items maturing in the following 12-18 months.

This margin is guaranteed by the liquidity produced by operating activity, subscriptions on the international capital market through bond issues and the available portion of committed credit lines.

For the bond issues, the best opportunities available on the various markets are selected when required with a view to minimising the costs and optimising the profile by expiry date.

Telecom Italia has likewise adopted strict guidelines for managing counterpart, credit, currency and interest rate risks. For example, investments can be made only with counterparts and issuers with a low risk profile, and limits of concentration by type of investment, sector and counterparts.

The Group risk management policy calls for total coverage of debt in currencies other than the Euro, when the international currency markets offer this type of instrument.

For interest rate risks, the Group debt is structured in such a way as to achieve an optimal spread in fixed and variable interest rates.