Universal Registration Document 2021

14.4.2 Changes in perpetual subordinated bonds during 2021

Social hybrid notes issue

EDF launched on 26 May 2021 an issue of an Euro-denominated perpetual social hybrid notes for a total nominal amount of €1.25 billion with an initial coupon of 2.625% and a first redemption at the option of EDF on 1 June 2028.

EDF can redeem the social hybrid notes for cash at any time during the 60 days before the first interest reset date, which is expected to be in 7 years (i.e. in 2028), and before every coupon payment date thereafter.

The proceeds raised through the social hybrid notes will be dedicated to the financing of eligible projects including any capital expenditure engaged by EDF group and contracted with SMEs which contribute to the development or maintenance of EDF group’s power generation or distribution assets in Europe and in the United Kingdom. In compliance with the social bond principles and the Sustainability Bond Guidelines of the ICMA (International Capital Market Association), this issuance of social hybrid notes is consistent with the commitments and the CSR (Corporate Social Responsibility) strategy of the Group in relation to the responsible development of local areas and the development of industrial sectors.

The settlement date occurred on 1 June 2021, on which date the social hybrid notes is admitted to trading on the regulated market of Euronext Paris.

This issue was recorded in equity upon reception of the proceeds, total net value of €1,239 million.

14.5 Convertible Green Bonds (OCEANEs)

Accounting principles and methods

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

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.

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. 

14.6 Non-controlling interests (minority interests)

14.6.1 Details of non-controlling interests