EDF Intends to Issue a new Euro-denominated Hybrid Note and to Launch a Tender Offer on Several Outstanding Hybrid Notes

EDF (the “Company”) is today announcing its intention to issue a new Euro-denominated tranche of perpetual 6 year non-call hybrid notes (the “New Notes”) with a first redemption at the option of the Company in October 2024.

At the same time, the Company is also launching a tender offer to purchase the following hybrid notes (together, the “Targeted Hybrid Notes”), admitted to trading on Euronext Paris:

1. EUR 1,250 million Reset Perpetual Subordinated Notes with a first redemption at the option of the Company on 29 January 2020 (ISIN: FR0011401736) of which EUR 1,250 million is currently outstanding;
2. EUR 1,000 million Reset Perpetual Subordinated Notes with a first redemption at the option of the Company on 22 January 2022 (ISIN: FR0011697010) of which EUR 1,000 million is currently outstanding;
3. GBP 1,250 million Reset Perpetual Subordinated Notes with a first redemption at the option of the Company on 29 January 2026 (ISIN: FR0011401728) of which GBP 1,250 million is currently outstanding; and
4. EUR 1,250 million Reset Perpetual Subordinated Notes with a first redemption at the option of the Company on 29 January 2025 (ISIN: FR0011401751) of which EUR 1,250 million is currently outstanding.

The Company offers to purchase for cash an aggregate principal amount of the Targeted Hybrid Notes based on the applicable acceptance priority levels as listed above (with one (1) being the highest acceptance priority level and four (4) being the lowest) and up to a maximum amount expected to be equal to the principal amount of the New Notes. If some, but not all, Notes of a series of the Targeted Hybrid Notes are to be purchased, all instructions validly tendered on the Notes of that series will be accepted for purchase on a pro-rated basis.

The aggregate size of the Company’s stock of hybrid notes will remain unchanged as a result and the Company remains committed to hybrid capital securities as a permanent part of its capital structure to fund assets under construction. It is expected that the portion of the Targeted Hybrid Notes remaining in circulation following the completion of the tender offer will continue to be assigned an equity content of 50% by the rating agencies.

The results of the tender offer will be announced on 3 October 2018 (subject to change as a result of any extension, withdrawal, termination or amendment of the tender offer).

The New Notes are scheduled to be admitted to trading on Euronext Paris. It is also expected that the rating agencies will assign the New Notes a rating of Baa3/BB/BBB (Moody’s/ S&P/ Fitch) and an equity content of 50%.