Econocom - 2019 Universal registration document

06 consolidated financial statements

notes to the consolidated financial statements

Convertible bonds In ژ March 2018, Econocom group issued OCEANE bonds in the amount of €200 million (€198.4 million after allocation of issue costs). Their main characteristics are detailed below:

Schuldschein notes In late

November ژ 2016,

Econocom

Group ژ SE in Schuldschein notes on the Frankfurt market. These notes, redeemable at maturity, comprise three tranches: €13 ژ million at seven ژ years, and €22 ژ million and €115 ژ million at five ژ years. Notes belonging to the first two tranches pay fixed-rate interest (2.088% at seven ژ years and 1.611% at five ژ years). The interest on the third tranche includes a fixed-rate portion of 1.5% and a floating-rate portion indexed to six-month EURIBOR. An interest rate swap was put in place in respect of these notes to protect the Group against the interest rate risk on the floating-rate portion. The swap hedges the risk of a rise in interest rates; however, it provides that if EURIBOR is negative, Econocom bears the interest rate risk. Commercial paper In October ژ 2015, Econocom diversified its financing and set up a commercial paper programme ( Econocom Group Société Européenne Billets de Trésorerie ). Through this programme, capped at €450 ژ million, the Group optimises and diversifies in the short term the financial resources to support its growth. This programme complements the Group’s bank financing and gives it access to short-term liquidity under favourable and transparent conditions, since it borrows from the negotiable debt securities market. issued €150 million

maturity: five ژ years; • annual coupon: 0.5%; • issue price: €8.26. •

If these bonds are not converted, they will be redeemed in cash on 6 ژ March 2023 at a price of €10.73. OCEANE bonds are compound instruments within the meaning of IAS ژ 32. The characteristics of the OCEANE bonds provide for the possibility of conversion into a fixed number of shares for a fixed amount of cash. An equity component has been calculated by subtracting the debt component of the OCEANE, measured at the rate of the debt without a conversion option, in application of sections ژ 29–30 of IAS ژ 32, which define the “equity” component as residual. On initial recognition, and net of issue costs, the equity component amounted to €16.7 million and the debt component to €181.7 million. Nonconvertible bonds Euro PP In May ژ 2015, Econocom Group SE took part in a €101 million bond issue (Euro PP) with eight institutional investors. The issue was in two tranches of €45.5 and €55.5 million, with respective maturities of five and seven ژ years. They pay fixed-rate interest (2.364% in five ژ years and 2.804% in seven ژ years) and are redeemable upon maturity ( in fine ).

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2019 annual report