EDF / 2020 Universal Registration Document

6 FINANCIAL STATEMENTS

Notes to the consolidated financial statements

14.4.2

Changes in perpetual subordinated bonds during 2020

Hybrid note issues On 8 September 2020, EDF launched two new issues of Euro-denominated hybrid notes for a total nominal amount of €2.1 billion, consisting of: a €850 million perpetual non-call hybrid notes issue with an initial coupon of ● 2.875% and a first redemption at the option of the Company on 15 December 2026; and a €1.250 billion perpetual non-call hybrid notes issue with an initial coupon of ● 3.375% and a first redemption at the option of the Company on 15 June 2030. The Company can redeem the hybrid notes for cash at any time during the 90 days before the first interest reset date, which is expected to be in 6.5 years (with a first reset date of March 2027) for the 6.5-year non-call hybrid notes, and in 10 years (with a first reset date of September 2030) for the 10-year non-call hybrid notes, and on every coupon payment date thereafter.

The settlement date was 15 September 2020 and the hybrid notes were admitted to trading on the regulated market of Euronext Paris at that date. These issues show the Company’s strong commitment to financing through hybrid capital securities, which are a permanent part of its capital structure. The proceeds of the hybrid notes issue are used for general corporate purposes of the Company. The hybrid notes have been admitted to trading on Euronext Paris. The rating agencies have assigned the hybrid notes a rating of Baa3/BB-/BBB (Moody’s/S&P/Fitch), and an equity content of 50%. This issue was recorded in equity upon reception of the proceeds, total net value of €2,081 million.

14.5

Convertible Green Bonds (OCEANEs)

Accounting principles and methods OCEANEs (bonds convertible into new shares and/or exchangeable for existing shares)

The debt-equity proportions remain constant even if there is a change in the likelihood that the conversion option will be exercised. The debt component is measured by the discounted future cash flows method using a discount rate applicable to a comparable market bond with no conversion option. The equity component corresponds to the difference between the fair value of the bond and the fair value of the debt component. Issue expenses are allocated between the debt and equity components in the same proportions as the initial allocation.

OCEANE bonds, which are convertible by remittal of a fixed number of shares in exchange for a fixed amount of cash (the “fixed-for-fixed” rule) give rise to recognition of a debt component and an equity component, in accordance with IAS 32.

On 8 September 2020, EDF made an issuance of Green Bonds convertible into new recorded at an amount of €2,389 million net of expenses and taxes in “Financial shares and/or exchangeable for existing shares ( OCEANEs Vertes ) with the nominal loans and borrowings” and €126 million in “Equity”. The key features of this issue amount of €2,400 million and an issue value of €2,569 million. These bonds are are presented in note 18.3.2.2.

14.6

Non-controlling interests (minority interests)

14.6.1

Details of non-controlling interests

31/12/2020

31/12/2019

Net income attributable to non-controlling interests

Net income attributable to non-controlling interests

Equity (non-controlling interests)

Equity (non-controlling interests)

Ownership %

(in millions of euros)

Principal non-controlling interests: EDF Energy Nuclear Generation Ltd.

20.0% 33.5% 7.54% 31.4% 24.5%

2,526 4,716

(91)

2,764 3,977

(16)

NNB Holding Ltd.

1

5

EDF Investissements Groupe SA

515 400 115

11 (5)

516 376 163

10 (6)

Luminus SA Framatome

(26)

(22)

Other non-controlling interests

1,321 9,593

75

1,528 9,324

56 27

TOTAL

(35)

362

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EDF - UNIVERSAL REGISTRATION DOCUMENT 2020