This excerpt taken from the ENI 6-K filed Mar 10, 2006.
INVESTMENT AND FINANCING POLICY FOR YEAR 2006
(a) Investment areas
Enersis S.A. will invest in the following areas, as authorized in its bylaws:
b) Maximum investment limits
The maximum investment limits of each area of investment are the following:
(c) Participation in the control of the investment areas
For the control of the investment areas and as established in its business purpose, Enersis S.A. will proceed, to all possible extent, as follows:
(a) Maximum level of indebtedness
The maximum level of indebtedness for Enersis S.A. will be given by a ratio of total debt / shareholders equity plus minority interest equal to 1.75 times, on a consolidated basis.
(b) Management powers for agreeing dividend restrictions with creditors
Restrictions regarding the distribution of dividends may be agreed with creditors, only if such restrictions have been previously approved by the General Shareholders Meeting (Ordinary and Extraordinary).
(c) Management powers for agreeing the granting of security with creditors
The Companys management may agree with creditors to the granting of personal guarantees or tangible security, in accordance with the law and bylaws.
(d) Essential assets for the functioning of the Company.
The essential assets for the functioning of Enersis S.A. are the shares represented by the contributions the former makes to its subsidiary Chilectra S.A. In the event that the subsidiary Elesur S.A. absorbs Chilectra S.A. through a corporate merger and as a consequence Chilectra S.A. is dissolved, for the effects of Law 3.500 it will be declared that the shares issued by Elesur S.A. that Enersis S.A. receives as a result of the merger, will become essential assets, from the date that the General Shareholders Meetings of Elesur S.A. and of Chilectra S.A. approve such merger. In any case, the General Shareholders Meetings of Elesur S.A. and of Chilectra S.A. that approve the merger should take place within six months from the date this Investment and Financing Policy was approved. After the above mentioned period of six months, in the event that the General Shareholders Meeting that will approve the merger have not taken place, the shares represented by the contributions that Enersis S.A. makes to its subsidiary Chilectra S.A. will continue to be essential assets.
Santiago, March 3, 2006