Universal Registration Document 2022

At 31 December 2022, the Group’s loans and other financial liabilities maturing within one year totalled €28,712 million and included €2,737 million relating to bonds, including accrued interest not yet due. This amount also comprises the negative cash position (including €1,734 million for margin calls on derivatives) and the liability relating to lease obligations (see note 18.3.3 to the 2022 consolidated financial statements). The associated requirements may when necessary be funded by the Group’s liquidities and available credit lines mentioned above, and other short-term resources mentioned below.

No Group company was in default on any borrowing at 31 December 2022.

5.1.6.1.1.2 Management of liquidity risk

The EDF group was able to meet its financing needs by conservative liquidity management and has obtained financing on satisfactory terms. On 16 March 2022, EDF set up bilateral 3-year credit lines for the total amount of €10.25 billion with 9 banks. Two further 3-year bilateral credit lines totalling $2.2 billion were then concluded on 25 March and 29 April. On 5 April 2022 EDF carried out a capital increase of €3.1 billion. On 5 October 2022 EDF issued a senior bond in 3 tranches for a nominal amount of €3 billion (including €1.25 billion of Green Bonds). On 18  November 2022 a €1  billion 3-year bilateral green loan was arranged, specifically to fund maintenance of existing French power plants, and this was followed on 28 November by the signature of 6 further 3-year bilateral loans for a total of €2.1 billion. Finally, on 30 November 2022 EDF launched a €1 billion hybrid bond issue.

A range of specific levers are used to manage the Group’s liquidity risk:

• the Group’s cash pooling system, which centralises cash management for controlled subsidiaries. The subsidiaries’ cash balances are made available to EDF in return for interest, so as to optimise the Group’s cash management and provide subsidiaries with a system that guarantees them market-equivalent financial terms;
• centralisation of financing for controlled subsidiaries: changes in subsidiaries’ working capital are financed by the Group’s cash management department through stand-by credit lines provided for subsidiaries, which can thus have revolving credit from the Group;
• active management and diversification of financing sources used by the Group: the Group has access to short-term resources on various markets through programmes for French commercial paper (billets de trésorerie), Negotiable European Commercial Paper (NEU CP), and US commercial paper (US CP). For EDF, the ceilings are €6 billion for the NEU CP programme and $10 billion for US commercial paper;
• transfer of bond liabilities to banking counterparties under cash repurchase agreements.

At 31 December 2022, the amount of the Group’s commercial paper outstanding was €9,798 million for NEU CP, and US$1,160 million for US CP.

EDF has access to the world’s main bond markets:

• the Euromarkets through its EMTN programme, which currently has a ceiling of €50 billion, particularly for euro and sterling issues.
• and the domestic markets used for stand-alone issues in US dollars (144A bonds), yen (Samurai bonds) and Swiss francs.

The average maturity of the Group’s gross debt was 9.4 years at 31 December 2022, compared to 13.7 years at 31 December 2021.

At 31 December 2022, EDF had a total amount of €13,594 million in available credit facilities (syndicated credit and bilateral lines):

• a syndicated credit line of €4  billion that expires in December  2025. No drawings had been made on this syndicated credit line at 31 December 2022;
• a syndicated social credit facility of €1.5 billion that expires in December 2025. No drawings had been made on this facility at 31 December 2022;
• bilateral credit lines representing an available amount of €8,094 million, with expiry dates extending to December 2026. The level of this available financing is very frequently reviewed to ensure the Group has sufficient backup credit facilities.

The 7 credit lines with the European Investment Bank were all fully drawn by EDF at 31 December 2022, for a total amount of €2,675 million.

Among other facilities, Edison has a credit line with the European Investment Bank (available amount of €300 million at 31 December 2022).

5.1.6.1.2 Credit rating

At 31 December 2022, the three financial ratings agencies Standard & Poor’s, Moody’s and Fitch Ratings attributed the following long-term and short-term ratings to EDF group entities. EDF was taken off Creditwatch and its outlook was revised on 14 December by Standard & Poor’s, acknowledging the State support for operational issues and restrictions on regulated electricity sales tariffs. Fitch also revised the Company’s outlook to stable on 6 September.

The Group’s rating may be affected by the risks described in chapter 2 of the 2022 Universal Registration Document, particularly risk 1A: “Changes in public policies and the regulatory framework in France and Europe, particularly ARENH” and risk 2D: “Risk of access to liquidity”.