Universal Registration Document 2021

18.3 Financial liabilities

Accounting principles and methods

Loans and other financial liabilities are carried at amortised cost, adjusted for changes in the value of the risks hedged when they are covered by a fair value hedge (see note 18.7). Interest expenses are calculated at the effective interest rate and recorded in the income statement in “Cost of gross financial indebtedness” over the duration of the loan or financial liability.

18.3.1 Breakdown between current and non-current financial liabilities

Current and non-current financial liabilities break down as follows:

	31/12/2021			31/12/2020
(in millions of euros	Non-current	Current	Total	Non-current	Current	Total
Loans and other financial liabilities	54,334	15,072	69,406	54,066	11,525	65,591
Trading derivatives – negative fair value*	-	22,027	22,027	-	5,125	5,125
Hedging derivatives – negative fair value*	2,209	7,915	10,124	1,833	959	2,792
FINANCIAL LIABILITIES	56,543	45,014	101,557	55,899	17,609	73,508

*See note 18.7.

The increase in the negative fair value of trading derivatives (+€16.9 billion) is explained by the increase in the value of derivatives used in the trading activity, principally associated with the changes in commodity market prices observed in 2021, and to a lesser extent the increase in volumes contracted.

18.3.2 Loans and other financial liabilities

18.3.2.1 Loans and other financial liabilities

(in millions of euros)	Bonds	Loans from financial institutions	Other financial liabilities	Lease liability	Accrued Interest	Total
Balances at 31/12/2020	Balances at 31/12/2020 Bonds50,196	Balances at 31/12/2020 Loans from financial institutions3,297	Balances at 31/12/2020 Other financial liabilities6,571	Balances at 31/12/2020 Lease liability4,307	Balances at 31/12/2020 Accrued Interest1,220	Balances at 31/12/2020 Total65,591
Increases	Increases Bonds 1,867	Increases Loans from financial institutions 938	Increases Other financial liabilities 4,135	Increases Lease liability 764	Increases Accrued Interest 119	Increases Total 7,823
Decreases	Decreases Bonds (3,426)	Decreases Loans from financial institutions (769)	Decreases Other financial liabilities (422)	Decreases Lease liability (729)	Decreases Accrued Interest (188)	Decreases Total (5,534)
Translation adjustments	Translation adjustments Bonds 531	Translation adjustments Loans from financial institutions 77	Translation adjustments Other financial liabilities 201	Translation adjustments Lease liability 50	Translation adjustments Accrued Interest 1	Translation adjustments Total 860
Changes in scope of consolidation	Changes in scope of consolidation Bonds -	Changes in scope of consolidation Loans from financial institutions 148	Changes in scope of consolidation Other financial liabilities (26)	Changes in scope of consolidation Lease liability (2)	Changes in scope of consolidation Accrued Interest -	Changes in scope of consolidation Total 120
Changes in fair value	Changes in fair value Bonds 74	Changes in fair value Loans from financial institutions 1	Changes in fair value Other financial liabilities (19)	Changes in fair value Lease liability -	Changes in fair value Accrued Interest -	Changes in fair value Total 56
Other changes*	Other changes* Bonds -	Other changes* Loans from financial institutions (2)	Other changes* Other financial liabilities 552	Other changes* Lease liability (53)	Other changes* Accrued Interest (7)	Other changes* Total 490
BALANCES AT 31/12/2021	BALANCES AT 31/12/2021Bonds49,242	BALANCES AT 31/12/2021Loans from financial institutions3,690	BALANCES AT 31/12/2021Other financial liabilities10,992	BALANCES AT 31/12/2021Lease liability4,337	BALANCES AT 31/12/2021Accrued Interest1,145	BALANCES AT 31/12/2021Total69,406

*Other movements include the reclassification at 1 January 2021 of short positions relating to margin calls on derivatives, which were previously netted and included in other financial liabilities, amounting to €281 million, and the commitment to redeem perpetual subordinate bonds amounting to €267 million (see note 14.4.1).

The principal bond-related operations of 2021 were:

a senior bond issue on November 2021 with gross value of €1.8 billion (see note 18.3.2.2);
bond redemptions of €3.4 billion during the year, comprising €2.0 billion in January 2021 and €1.4 billion in April 2021.

At 31 December 2021, EDF’s other financial liabilities include negotiable debt instruments amounting to €5,117 million, and an amount of €1,695 million recognised in respect of the cash received for debt securities transferred to banks under repurchase agreements. These operations do not affect the net indebtedness.

A breakdown of the issuance and repayments of borrowings as presented in the cash flow statement is presented below:

(in millions of euros)	Bonds	Loans from financial institutions	Other financial liabilities	Lease liability	Termination of hedging derivatives	31/12/2021
(in millions of euros) Issuance of borrowings	Bonds 1 867	Loans from financial institutions 938	Other financial liabilities 4,135	Lease liability -	Termination of hedging derivatives 3	31/12/2021 6,943
(in millions of euros) Repayments of borrowings	Bonds (3,426)	Loans from financial institutions (769)	Other financial liabilities (422)	Lease liability (729)	Termination of hedging derivatives 186	31/12/2021 (5,161)