Other non-monetary changes declined by -€5,160 million compared to 2018, principally reflecting the application of IFRS 16 from 1 January 2019 (-€4,878 million, comprising -€4,492 for the initial liability recognised at 1 January 2019 and -€386 million of changes in IFRS 16 liabilities in 2019).
| 2019 | 2018 | 2017 | |
|---|---|---|---|
| Net indebtedness/EBITDA | Net indebtedness/EBITDA 20192.46 | Net indebtedness/EBITDA 2018 2.24 | Net indebtedness/EBITDA 2017 2.40 |
| Net indebtedness/(Net indebtedness + equity)(2) | Net indebtedness/(Net indebtedness + equity) (2)201942% | Net indebtedness/(Net indebtedness + equity) (2)2018 39% | Net indebtedness/(Net indebtedness + equity) (2)2017 40% |
(1) The published figures for 2018 have been restated due to the impact of presenting the E&P operations as discontinued operations and the reclassification of investments included in New Developments in 2018 (excluding the Hinkley Point C and Linky projects).
(2) Equity including non-controlling interests.
This section sets forth the policies and principles for management of the Group’s financial risks defined in the Strategic financial management framework (liquidity, interest rate, foreign exchange rate and equity risks), and the Group counterparty risk management policy set up by the EDF group. These principles apply only to EDF and operationally controlled subsidiaries or subsidiaries that do not benefit by law from specific guarantees of independent management such as Enedis. In compliance with IFRS 7, the following paragraphs describe the nature of risks resulting from financial instruments, based on analyses of sensitivities and credit (counterparty) risks.
Since 2002, a dedicated body – the Financial Risks Control Department (Département contrôle des risques financiers et investissements – CRFI) – has been in charge of financial risk control at Group level, mainly by ensuring correct application of the principles of the Strategic Financial Management Framework (July 2015). This department, which has reported to the Group’s Risk Division since 2008, is an independent unit that also has the task of carrying out a second-level check of the risk of counterparty default (methodology and organisation) for EDF entities and operationally controlled Group subsidiaries (excluding Enedis), and a first-level check of financing activities by EDF SA’s Trading room. The CRFI Department also carries out a second-level check of management activities concerning the dedicated asset portfolio.
The CRFI Department issues daily and weekly monitoring reports of risk indicators relevant to activities in EDF SA’s trading room.
Regular internal audits are carried out to ensure controls are actually applied and are effective.
At 31 December 2019, the Group’s liquidities, consisting of liquid assets, cash and cash equivalents, totalled €22,895 million and available credit lines amounted to €10,490 million.
For 2020, the Group’s scheduled debt repayments (principal and interest) are forecast at 31 December 2019 at €13,357 million, including €3,836 million for bonds (excluding hybrid bonds).
No Group company was in default on any borrowing at 31 December 2019.
On 27 November 2019, EDF raised $2 billion through issuance of a US dollar-denominated senior bond with 50-year maturity and a fixed coupon of 4.50%. This transaction demonstrates the Group’s capacity to attract a highly diversified investor base at the long end of the credit curve.
In addition, on 2 December 2019, EDF raised €1.25 billion through issuance of a euro-denominated senior bond, with 30-year maturity and a fixed coupon of 2.00%. This is the largest amount raised by a corporate issuer on this maturity in the Euro market.
Details of the Group’s bond borrowings are given in note 41.2 to the 2019 consolidated financial statements “Loans and other financial liabilities”.
The average maturity of the Group’s gross debt was 15.4 years at 31 December 2019, compared to 13.6 years at 31 December 2018. For EDF SA, the average maturity was 15.9 years at 31 December 2019, against 14.2 years at 31 December 2018.
At 31 December 2019, the residual maturities of financial liabilities (including interest payments) are as follows under IFR 9 (valued on the basis of exchange and interest rates at
31 December 2019):
| Hedging instruments | ||||
|---|---|---|---|---|
| 31 December 2019 | Debt | Interest rate swaps | Currency swaps | Guarantee given on borrowings |
| 2019 | 2019 13,369 | 2019 Hedging instruments(283) | 2019 (420) | 77 |
| 2020-2023 | 2020-2023 22,276 | 2020-2023 Hedging instruments(942) | 2020-2023 (1,437) | 475 |
| 2024 and later | 2024 and later 79,998 | 2024 and later Hedging instruments(920) | 2024 and later (4,068) | 478 |
| TOTAL | TOTAL 115,643 | TOTALHedging instruments(2,145) | TOTAL (5,925) | 1,030 |
| debt repayment | debt repayment 66,049 | |||
| interest expense | interest expense 49,594 | |||
*Data on hedging instruments include both assets and liabilities.
