Paris, France, 26 May 2021 – EDF (BBB+ S&P / A3 Moody's / A- Fitch) successfully 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 (the “Social Hybrid Notes”).
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 (see the EDF Social Bond Framework for more details1). 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.
With this issuance of Social Hybrid Notes, fully consistent with its raison d’être, EDF achieves a double world’s first: it is the first benchmark issue of social bonds by a utility company and the first benchmark issue of social hybrid bonds by a corporate issuer.
The settlement date will occur on 1st June 2021, on which date the Social Hybrid Notes will be admitted to trading on the regulated market of Euronext Paris.
The rating agencies have assigned the Social Hybrid Notes a rating of BB- / Baa3 / BBB (S&P / Moody’s / Fitch) and an equity content of 50%.
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