In its press release of 27 July 2022, the ASN declared its position reached on 26 July 2022 regarding EDF’s proposed inspection strategy for the stress corrosion affecting its reactors. The ASN considered EDF’s strategy appropriate given the knowledge learned about this phenomenon, and the related safety issues.
Of the 16 reactors identified as the most susceptible to stress corrosion, 10 were treated in 2022 or are currently being treated. All these reactors will have been treated by the end of 2023:
Discussions continued with the ASN about the treatment programme for stress corrosion.
Given the outages for inspections and repairs, in 2022 EDF regularly released information about adjustments to nuclear output estimates. As stated in the press release of 3 November 2022, all this information finally led EDF to revise its nuclear power output for 2022 downwards, to a range of 275-285 TWh (see note 7 (2)). The final volume was 279TWh, down by 81.7TWh or 23% from 2021.
On 4 November 2022, GE and EDF signed a final agreement related to EDF’s acquisition of GE Steam Power’s nuclear activities. These activities include the manufacturing of conventional island equipment for new nuclear power plants, including the Arabelle steam turbine as well as maintenance and upgrade activities for existing nuclear power plants in all regions other than the Americas. The transaction also includes steam turbine technology for first and second-generation European pressurised reactors (EPR and EPR 2) and small modular reactors (SMR).
This agreement is the next milestone in the process that began with the exclusive agreement signed on 10 February 2022.
This acquisition will enable the EDF group to strengthen the conventional island technologies and skills, which are essential for the durability of the existing nuclear fleet and future projects.
The transaction is expected to close in the second half of 2023 and is subject to customary closing conditions including regulatory approvals.
On 7 April 2022, EDF carried out a cash capital increase, maintaining the shareholders’ preferential subscription rights.
This capital increase totalled €3,164 million gross (including the issue premium) and led to the issuance of 498,257,960 new shares with a unit issue price of €6.35, recognised in the financial statements as follows:
Issuance expenses were recognised as a deduction from the issue premium.
The French State, as undertaken, subscribed €2.7 billion or approximately 83.88% of this capital increase and holds 83.88% of the Company’s share capital following completion of this capital increase.
In March 2022 EDF concluded bilateral credit lines for a total €10.25 billion and US$2.2 billion. These lines mature in 3 years and do not carry an early repayment penalty.
These facilities were concluded with 12 banks.
This operation increased the Group’s financial flexibility for future years.
All these credit lines were used in the first half of the year (see note 31 (2)). The credit lines in euros were drawn in March and April: they mature in March 2025 and bear interest at 3-month Euribor. The USD credit lines were drawn in April and May 2022: they mature in March or April 2025 and bear interest based on the SOFR CMP LOOKBACK (-5BD) (a compounded in arrears SOFR with a 5 business day observation shift).
EDF and the EIB signed an €800 million loan contract to partly finance investments by EDF’s subsidiary Enedis, an independently managed power grid operator, for the connection of decentralised renewable energy production facilities and electric vehicle charging stations in mainland France over the period 2022-2024.
This operation is reflected at 31 December 2022 in the grant of credit lines to EDF totalling €800 million (see note 31 (2)), fully drawn by Enedis.
On 5 October 2022 EDF launched a senior bond issue in 3 tranches for a nominal amount of €3 billion (see note 31 (1)):
An amount equal to the net proceeds of the Green Bond will be used to finance and/or refinance all or part of the electricity distribution investments defined in EDF’s Green Financing Framework published in July 2022.
Settlement and delivery took place on 12 October 2022, and the bonds were admitted to trading on the regulated market of Euronext Paris at that date.
On 18 November 2022 EDF and Crédit Agricole CIB announced that they had signed a €1 billion bilateral green loan for the maintenance of existing French power plants.
This operation by EDF and Crédit Agricole CIB is the first transaction in which the funds will be entirely dedicated to investments made for EDF’s nuclear activities, which makes it a world first in the energy transition. This loan will contribute to the Grand Carénage programme to enhance safety and extend the operating lifetime of French nuclear reactors beyond 40 years.
