On 10 September 2024, EDF (BBB positive S&P / Baa1 stable Moody’s / BBB+ stable Fitch) successfully priced a new issuance of green perpetual subordinated notes (the “New Notes”):
- €500 million bond, at an initial 5.125% coupon until 2029 with a 5.25-year first call date at EDF’s discretion;
- €650 million bond, at an initial 5.625% coupon until 2032 with a 8-year first call date at EDF’s discretion;
- £500 million bond, at an initial 7.375% coupon until 2035 with a 11-year first call date at EDF’s discretion.
This transaction enables EDF to finance its strategy and objective to contribute to achieving carbon neutrality by 2050. The net proceeds of the New Notes will be used to finance and/or refinance investments as defined in EDF’s Green Financing Framework ([1]) and aligned with the European taxonomy in relation to the lifetime extension of the existing nuclear reactors in France. As a reminder, the carbon intensity of nuclear power plants in France is 4gCO²/kWh ([2]).
It is expected that the rating agencies will assign the New Notes a rating of B+/Ba1/ /BBB- (S&P/ Moody’s/Fitch) and an equity content of 50%.