EDF / 2019 Universal registration document

6. Financial statements

Notes to the consolidated financial statements

41.2.4

Breakdown of loans and other financial liabilities by type of interest rate

31/12/2019

31/12/2018

Initial debt structure

Impact of derivatives

Final debt structure

Initial debt structure

Impact of derivatives

Final debt structure

(in millions of euros)

Fixed rates

62,128

(21,035) 21,035

41,093 26,287 67,380

55,810

(21,949) 21,949

33,861 25,327 59,188

Floating rates

5,252

3,378

LOANS AND OTHER FINANCIAL LIABILITIES

67,380

-

59,188

-

The breakdown of loans and financial liabilities by interest rate includes the impact of all derivatives classified as hedges in accordance with IFRS 9.

A large portion of the EDF group’s fixed-rate loans is swapped to variable rates.

41.2.5

Credit lines

At 31 December 2019, the Group has unused credit lines with various banks totalling €10,490 million (€11,393 million at 31 December 2018). This total

includes €5,050 million of credit lines indexed on ESG criteria, which were totally

undrawn at 31 December 2019 (see note 3.3.1).

31/12/2019

31/12/2018

Maturity

Total

< 1 year

1-5 years

> 5 years

Total

(in millions of euros)

CONFIRMED CREDIT LINES

10,490

1,371

9,099

20

11,393

41.2.6

Early repayment clauses

No early repayment took place in 2019 as a result of any Group entity’s failure to comply with contractual clauses concerning loans.

Project financing loans to EDF Renewables from non-Group parties generally include early repayment clauses, mainly applicable when the project company concerned fails to maintain a minimum Debt Service Coverage Ratio (DSCR). In general, early repayment clauses are activated when this ratio falls below 1. In other Group entities, certain clauses contained in contracts for financing or other commitments may make reference to Group ratings but are not classified as covenants. Two borrowings with a combined total of €750 million contain a rendezvous clause requiring contact between the borrower and lender if the borrower’s rating falls below a specified level, possibly leading to renegotiation of the terms of the loan.

41.3

Net indebtedness

Net indebtedness is not defined in the accounting standards and is not directly presented in the consolidated balance sheet. It comprises total loans and financial liabilities, less cash and cash equivalents and liquid assets. Liquid assets are financial assets consisting of funds or interest rate instruments with initial maturity of over three months that are readily convertible into cash and are managed according to a liquidity-oriented policy.

31/12/2019

Notes

31/12/2018

(in millions of euros)

41.2.1

Loans and other financial liabilities* Derivatives used to hedge liabilities

67,380 (3,387) (3,934) (18,900)

59,188 (1,972) (3,290) (20,538)

44 40

Cash and cash equivalents

39.2.2

Debt and equity securities – liquid assets Net indebtedness of assets held for sale

(26)

-

NET INDEBTEDNESS*

41,133

33,388

From 1 January 2019, due to application of IFRS 16, net indebtedness includes the lease liability, amounting to €4,492 million (see note 41.2). *

368

EDF | Universal registration document 2019

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