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:
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.
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 withIAS 32.
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.
On 8 September 2020, EDF made an issuance of Green Bonds convertible into new shares and/or exchangeable for existing shares (OCEANEs Vertes) with the nominal amount of €2,400 million and an issue value of €2,569 million. These bonds are recorded at an amount of €2,389 million net of expenses and taxes in “Financial loans and borrowings” and €126 million in “Equity”. The key features of this issue are presented in note 18.3.2.2.
31/12/2020 | 31/12/2019 | ||||
|---|---|---|---|---|---|
(in millions of euros) | Ownership % | Equity(non-controlling interests) | Net income attributable to non-controlling interests | Equity (non-controlling interests) | Net income attributable to non-controlling interests |
Principal non-controlling interests: | Principal non-controlling interests: 31/12/2020
| Principal non-controlling interests: 31/12/2019
| |||
| EDF Energy Nuclear Generation Ltd. | EDF Energy Nuclear Generation Ltd. 31/12/2020 20.0% | EDF Energy Nuclear Generation Ltd. 31/12/2019 2,526 | (91) | 2,764 | (16) |
| NNB Holding Ltd. | NNB Holding Ltd. 31/12/2020 33.5% | NNB Holding Ltd. 31/12/2019 4,716 | 1 | 3,977 | 5 |
| EDF Investissements Groupe SA | EDF Investissements Groupe SA 31/12/2020 7.54% | EDF Investissements Groupe SA 31/12/2019 515 | 11 | 516 | 10 |
| Luminus SA | Luminus SA 31/12/2020 31.4% | Luminus SA 31/12/2019 400 | (5) | 376 | (6) |
| Framatome | Framatome 31/12/2020 24.5% | Framatome 31/12/2019 115 | (26) | 163 | (22) |
Other non-controlling interests | Other non-controlling interests 31/12/2020
| Other non-controlling interests 31/12/2019 1,321 | 75 | 1,528 | 56 |
TOTAL | TOTAL 31/12/2020
| TOTAL 31/12/2019 9,593 | (35) | 9,324 | 27 |
