13. AVAILABLE FOR SALE FINANCIAL ASSETS

The assets recognised in this caption at 31 December 2014 and 2013 corresponds to equity interests held on strategic entities for the Group, which can be detailed as follows:

Head office

Book value

City

Country

%
owned

'14

'13

OMEL - Operador del Mercado Ibérico de Energia (Polo Espanhol) Madrid Spain 10,00%

3,167

3,167
Red Electrica Corporacion, S.A. ("REE") Madrid Spain 1,00%

99,104

65,654
Enagás, S.A. Madrid Spain 1,00%

62,530

45,360
Med Grid SAS Paris France 5,45%

600

500
Hidroeléctrica de Cahora Bassa, S.A ("HCB") Maputo Mozambique 7,50%

41,572

42,205

206,973

156,886

The changes in this caption in 2014 and 2013 were as follows:

OMEL

MED GRID

HCB

REE

ENAGAS

Total

At 1 January 2013

3,167

400

38,400

50,493

38,542

131,002

Acquisitions - 100 - - -

100

Fair value adjustments - - 3,805 15,161 6,818

25,784

At 31 December 2013 3,167 500 42,205 65,654 45,360

156,886

At 1 January 2014

3,167

500

42,205

65,654

45,360

156,886

Acquisitions - 100 - - -

100

Fair value adjustments - - (633) 33,450 17,170

49,987

At 31 December 2014 3,167 600 41,572 99,104 62,530

206,973

The interests held in REE and Enagás are recorded at fair value determined based on the shares closing quotations as of 31 December 2014.

Red Eléctrica de España, S.A. (“REE”) is the transmission system operator of electricity in Spain. The Group acquired 1% of equity interests in REE as part of the agreement signed by the Portuguese and Spanish Governments. REE is a listed company in Madrid`s index IBEX 35– Spain and the financial asset was recorded on the statement of financial position at the market price on 31 December 2014.

ENAGÁS is the transmission system operator of natural gas in Spain. REN acquired a 1% stake in Enagás as part of a strategic partnership agreement. Enagás is a listed company in Madrid`s index IBEX 35– Spain and the financial asset was recorded on the statement of financial position at the market price on 31 December 2014.

During the year ended 31 December 2014 the Group reclassified the amount relating to ENAGÁS available for sale to current assets, considering that the future sale of those shares in the next twelve months is highly probable.

REN holds interests representing 5.45% of the share capital of Medgrid, S.A.S. This project is an international partnership to promote and develop interconnection electric network of the Mediterranean, allowing the transportation of clean electricity produced in Africa to Europe.

REN SGPS holds 2,060,661,943 shares representative of 7.5% of Hidroeléctrica de Cahora Bassa S.A. share capital and voting rights, as a result of the conditions established in the agreement signed on 9 April 2012, between REN, Parpublica – Participações Públicas, SGPS, S.A. (“Parpublica”), CEZA – Companhia Eléctrica do Zambeze, S.A. and EDM – Electricidade de Moçambique. This participation was initially recorded at its acquisition cost (38,400 thousand Euros) and subsequently adjusted to its fair value (Note 12).

Within the scope of the creation of a sole operator in the electricity Iberian market (OMI), in 2011 and as agreed between the Portuguese republic and the Kingdom of Spain regarding the creation of the Iberian electrical energy market, the Group acquired 10% of the share capital of OMEL, Operador del Mercado Ibérico de Energia, S.A., in the amount of 3,167 thousand Euros.

As there are no available market price for the above referred investments (MedGrid and OMEL), and as it is not possible to determine the fair value of the period using comparable transactions, these shares are recorded at its acquisition cost deducted of impairment losses as described in Note 3.6, being REN understanding that there is no evidence of impairment loss of these investments on 31 December 2014.

The adjustments to fair value of available-for-sale financial assets are recognised in the equity caption “Fair value reserve”. This caption at 31 December 2014 and 2013 is made up as follows:

Fair value reserve (Note 19)

1 January 2013

(4,093)

Changes in fair value 25,784
Tax effect (805)
31 December 2013 20,886

1 January 2014

20,886

Changes in fair value 49,987
Tax effect (10,560)
31 December 2014 60,313

In the year ended 31 December 2014 the total amount of associated companies’ dividends recognised in the consolidated statement of profit and loss amounted to 8,569 thousand Euros, of which 8,422 thousand Euros were received and included in the cash flow statement.

The detail of dividends by entity is as follows:

'14

'13

Red Electrica Corporacion, S.A. ("REE")

3,588

3,266
Enagás, S.A.

3,065

2,836
Hidroeléctrica de Cahora Bassa, S.A ("HCB")

1,858

1,405
OMEL - Operador del Mercado Ibérico de Energia (Polo Espanhol)

57

50

8,569

7,558