Note 30 Equity

30.1 Share capital

At 31 December 2019, EDF’s share capital amounts to €1,551,810,543 comprising 3,103,621,086 fully subscribed and paid-up shares with nominal value of €0.50, owned 83.58% by the French State, 14.92% by the public (institutional and private investors) and 1.34% by current and retired Group employees, with 0.16% held by EDF as treasury shares.

In June 2019, payment of part of the balance of dividends for 2018 in the form of a scrip dividend led to a €20 million increase in the share capital and an issue premium of €431 million following issuance of 40,701,950 new shares. The legal formalities for this operation were finalised in June 2019.

In December 2019, payment of part of the interim dividend for 2019 in the form of a scrip dividend led to a €27 million increase in the share capital and an issue premium of €403 million following the issuance of 52,651,460 new shares.

Under Article L. 111-67 of the French Energy Code, the French State must hold more than 70% of the capital of EDF at all times.

30.2 Treasury shares

A share repurchase programme authorised by the General Shareholders’ Meeting of 9 June 2006 was implemented by the Board of Directors, within the limit of 10% of the total number of shares making up the Company’s capital. The initial duration of the programme was 18 months, renewed for 12 months then by tacit agreement every year.

A liquidity contract exists for this programme, as required by the French market regulator AMF (Autorité des marchés financiers).

At 31 December 2019, treasury shares deducted from consolidated equity represent 4,882,938 shares with total value of €64 million.

30.3 Dividends

The General Shareholders’ Meeting of 16 May 2019 decided to distribute an ordinary dividend of €0.31 per share in respect of 2018, offering shareholders the choice of payment in cash or shares (scrip option).

In application of Article 24 of the Company’s articles of association, shareholders who had held their shares continuously for at least 2 years at the year-end and still held them at the dividend distribution date benefit from a 10% bonus on their dividends. The number of shares carrying an entitlement to the bonus dividend cannot exceed 0.5% of the Company’s capital per shareholder. The bonus dividend amounts to €0.341 per share.

As interim dividends of €0.15 per share had been paid in the form of cash on 10 December 2018, the balance payable for 2018 amounted to €0.16 per share benefiting from the ordinary dividend and €0.191 per share benefiting from the bonus dividend. The balance of the dividend was paid out on 18 June 2019.

The French government opted for the scrip dividend for the balance of 2018 dividends payable.

The balance of the cash dividend paid to shareholders who did not opt for the scrip dividend for 2018 amounts to €31 million.

On 19 November 2019, EDF’s Board of Directors decided to distribute an interim dividend of €0.15 per share in respect of 2019. This interim dividend amounting to a total of €458 million was paid out in the form of new shares (scrip option) or cash on 17 December 2019.

The French government opted for the scrip interim dividend for 2019.

The amount of the cash dividend paid to shareholders who did not opt for the scrip interim dividend for 2019 amounted to €27 million.

30.4 Equity instruments

At 31 December 2019, perpetual subordinated bonds carried in equity amounted to €9,209 million (less net-of-tax transaction costs).

Issues and redemptions of perpetual subordinated bonds were recorded in equity at 31 December 2019 at the total net value of €(1,125) million (see notes 3.3.2 and 3.3.3).

Interest paid by EDF to the bearers of perpetual subordinated bonds issued totalled €589 million in 2019 and €584 million in 2018. The resulting cash payout is reflected in a corresponding reduction in Group equity.

In January 2020, EDF paid interest of around €286 million to the bearers of perpetual subordinated bonds.

PERPETUAL SUBORDINATED BONDS IN THE ACCOUNTS OF EDF