EDF / 2018 Reference document

FINANCIAL STATEMENTS Notes to the consolidated financial statements

3.4

SENIOR BOND ISSUES: EDF RAISES

issued approval no. 18–466 dated 2 October 2018 for the prospectus concerning these instruments, for which settlement and delivery took place on 4 October 2018. EDF remains committed to using hybrid bonds as a permanent part of its capital structure, to fund assets under construction. In compliance with IAS 32, this issuance of perpetual subordinated bonds (see note 1.3.20.4) was recorded in equity upon receipt of the funds, at the amount of €1,243 million net of expenses.

$3.75 BILLION AND €1 BILLION On 19 September 2018, EDF raised US$3.75 billion through 3 senior bond issues: a $1.8 billion bond, with 10-year maturity and a 4.500% fixed coupon; ■ a $650 million bond, with 20-year maturity and a 4.875% fixed coupon; ■ a $1.3 billion bond, with 30-year maturity and a 5.000% fixed coupon. ■ In addition, on 25 September 2018 EDF launched a €1 billion senior note offering, with 12-year maturity and a 2% fixed coupon. These transactions enable the EDF group to further reinforce the structure of its balance sheet, and to refinance upcoming financial obligations.

3.6

REDEMPTION OF CERTAIN SERIES

OF HYBRID BONDS

On 25 September 2018 EDF issued a cash tender offer for redemption of four outstanding series of hybrid bonds. Following the end of the tender offer period on 3 October 2018, EDF proceeded to the cash redemption of bonds validly tendered from the first two hybrid issues, according to the order of priority, for an amount of €1.25 billion. The total value of EDF’s hybrid bonds remains unchanged as a result of the above hybrid bond issue and redemption transactions.

3.5

ISSUANCE OF PERPETUAL SURBORDINATED BONDS

On 25 September 2018, EDF successfully launched a €1.25 billion “reset perpetual 6 year non-call hybrid note” with a 4% coupon and a first redemption at EDF’s call between 4 July 2024 and 4 October 2024 inclusive. The French market regulator

The results of the tender offer are summarised in the table below:

6.

Tendered Amounts (as % of out- standing)

Acceptance Priority Levels

Acceptance Amounts

Pro-Rating Factors

Tender Prices

Tendered Amounts

Targeted hybrid bonds

ISIN

2020 bonds 2022 bonds 2026 bonds 2025 bonds

FR0011401736 FR0011697010 FR0011401728 FR0011401751

1 €911,800,000 2 €635,100,000

73% €911,800,000 100.00% 105.255% 64% €338,200,000 59.50% 108.185%

3 4

N/A N/A

N/A N/A

0 0

N/A N/A

N/A N/A

3.8

EDF RENEWABLES

The settlement of the tender offer took place on 5 October 2018. In compliance with IAS 32, this redemption of perpetual subordinated bonds (see note 1.3.20.4) was recorded in equity upon disbursement of the funds, at the amount of €1,329 million net of expenses.

3.8.1

EDF Renewables invests in New Jersey for development of offshore wind power projects

3.7

SYNDICATION OF AN INNOVATIVE ESG-INDEXED REVOLVING CREDIT FACILITY

EDF Renewables North America and Shell New Energies US LLC (Shell) announced on 20 December 2018 that they had formed a 50/50 joint venture, Atlantic Shores Offshore Wind, LLC, to co-develop the OCS-0499 lease area within the New Jersey Wind Energy Area (WEA). The lease area holds the potential to produce approximately 2,500MW of offshore wind energy – enough to cover the annual energy consumption of close to one million homes. This operation requires regulatory approvals, and construction is subject to a positive final investment decision. The lease area comprises 74,200 hectares and lies about 13 kilometres off the coast of Atlantic City on the US Outer Continental Shelf (OCS). The area offers strong and steady wind resources in relatively shallow water, close to large population centres with high electricity demand. The maritime lease was purchased as part of this project, for a price of up to €199 million (EDF’s share).

On 14 December 2018 EDF completed the syndication of a €4 billion revolving credit facility (see note 38.2.5), the cost of which is indexed on three of the Group’s key performance indicators (KPIs) for environmental, social and governance (ESG) matters: EDF’s direct CO 2 emissions, EDF’s customers’ use of its online consumption monitoring tools (as an indicator of EDF’s success in getting French residential customers actively engaged with their consumption), and the electrification of EDF’s vehicle fleet. This ESG-indexed credit facility, which involves a syndicate of more than 20 banks, amends EDF’s existing €4 billion revolving credit facility, extending it to a new maturity in 2023. It complements the set of sustainable financing tools that EDF has been developing over the last few years, particularly in the Green Bond market.

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EDF I Reference Document 2018