Debt and invested funds

Edenred's business model, which generates a high volume of cash and consumes a small amount of capital, enables the Group to maintain a strong financial position.

Rating

Edenred is rated BBB+; Outlook positive, i.e. “Strong Investment Grade” by Standard & Poor’s. The rating has been confirmed by Standard & Poor’s as of April 28, 2022.

This rating is based on a multi-criteria analysis, appraising:

Sustainable finance

True to its purpose “Enrich connections. For good.”, Edenred has issued a Sustainability‐Linked Bond Framework to further integrate sustainable development into its economic performance.

This framework aims at aligning Edenred’s business and financing with its commitments and values, by creating a direct link between its sustainability strategy and the funding strategy after having already included environmental and social KPIs in its 2020 Revolving Credit Facility.

The Framework has been established in accordance with the Sustainability-Linked Bond Principles (SLBP) administered by ICMA and reviewed by EthiFinance who provided a Second Party Opinion.

Debt structure at end December 2021

Breakdown of net debt

As of December 31, 2021
In € million

Breakdown by type of debt

In € million

Breakdown by type of interest rate

After hedging

Focus on bonds issues

  Currency Amount (in million) Annual coupon Maturity
06/18/2020 EUR 600 1.375% 06/18/2029
9 years
12/06/2018 EUR 500 1.875% 03/06/2026
7 years
3/30/2017 EUR 500 1.875% 3/30/2027
10 years
3/10/2015 EUR 500 1.375% 3/10/2025
10 years
5/23/2012 EUR 225 3.750% 5/23/2022
10 years

 

Focus on Convertible Bond issue

  Currency Amount (in million) Annual coupon Maturity
06/14/21 EUR 400 0% 06/14/2028
7 years
09/06/19 EUR 500 0% 06/09/2024
5 years

Breakdown by maturity

In € million

Gross debt cost as of December 31, 2021

Before hedging 1.4%
After hedging 0.7%

 

Confirmed lines of credit

As of December 31, 2021, Edenred had a €750 million undrawn confirmed line of credit, expiring at the end of February 2026. This facility will be used for general corporate purposes.

The maturity of the €700 million syndicated credit facility expiring on February 12, 2026 was extended by one year in February 2022, in line with the extension option granted in the facility agreement. By accepting this extension, all the participating banks reaffirmed their confidence in the Group. With the new five-year maturity, the facility will now be utilizable until February 2027.

Investments

The Group’s negative working capital amounted to €5.2 billion as of December 31, 2021.

 

Negative working capital (WC) breakdown as of December 31, 2021

In € million

* Restricted cash are funds which correspond to prepaid service vouchers under special regulations. They are excluded when calculating the net debt.

 

Breakdown of the invested funds as of December 31, 2021

By maturity

By geography

Note: The remuneration from the investments is recorded as financial revenue.

 

A cautious investment policy

To manage its treasury, the Group’s market risk management policy is designed to mitigate the capital, the liquidity and the counterparty risks.

Hence, most of the financial investments are made in monetary instruments (fixed-rate time deposits, term accounts, retail certificates of deposit or interest-bearing demand deposits).

Exposure to counterparty risk is reduced by:

The majority of the Group’s available cash is managed under a centralized cash-management scheme enabling to reduce the Group’s risk exposure thanks to a centralized and regular monitoring.

Convertible Bond

Currency Amount (in million) Number of bonds issued Coupon Maturity Press release
06/14/21 EUR 400 6,173,792 0% per year 7 years PDF (155 KB)
06/09/19 EUR 500 8,179,290 0% per year 5 years PDF (164 KB)

Other bond issues prospectus

Currency Amount (in million) Rating (Standard & Poor's) Annual coupon Maturity Press release Official prospectus
06/18/20 EUR 600 BBB+ 1.375% 9 years PDF (86,6 KB) PDF (997 KB)
12/06/18 EUR 500 BBB+ 1.875% Long
7 years
PDF (104 KB) PDF (1 299 KB)
03/30/17 EUR 500 BBB+ 1.875% 10 years PDF (311 KB) PDF (647 KB)
03/10/15 EUR 500 BBB+ 1.375% 10 years PDF (200 KB) PDF (331 KB)
05/23/12 EUR 225 BBB+ 3.750% 10 years PDF (116 KB) PDF (820 KB)

General meeting of the holders of bonds

General meetings held in closed session – March 2021

As part of the conversion of the corporate form of the company EDENRED (the “Company”) through the adoption of the European company statute, the Board of Directors has decided to convene the general meetings of the holders of the bonds of the Company, as listed below, on March 18, 2021 (and, in case of lack of quorum, on March 29, 2021 on second convening):

Given the current sanitary context and the related restrictions, and in accordance with the provisions of Article 4 of Ordinance No. 2020-321 of March 25, 2020, the said general meetings of the holders of the bonds will exceptionally be held in closed session (at the Company's registered office located at 14-16 boulevard Garibaldi, 92130 Issy-les-Moulineaux, France), without the bondholders and other persons entitled to attend (other than the members of the executive committee (bureau) of each general meeting) being present, either physically or by telephone or audiovisual conference.
The conditions to participate in each of the general meetings appear in the convening notice dated March 3, 2021 (also available below), it being said that:

You may find below all the documents relating to these general meetings of March 2021:

Download
Convening notice – General meetings of bondholders dated March 18, 2021 (PDF, 134 KB)
Report of the Board of Directors – General meetings of bondholders dated March 2021 (PDF, 133 KB)
Forms – General meetings of bondholders dated March 18, 2021 (PDF, 363 KB)
Draft terms of conversion of Edenred to a European Company – December 2020 (PDF, 355 KB)
Second convening – Convening notice – General meetings of bondholders dated March 29, 2021 (PDF, 136 KB)
Forms – General meetings of bondholders dated March 29, 2021 (PDF, 278 KB)

Delayed broadcast of the General Meeting of the holders of bonds issued on May 23, 2012, and held on March 18, 2021 [in French only]

 

Delayed broadcast of the General Meeting of the holders of bonds issued on March 10, 2015, and held on March 18, 2021 [in French only]

 

Delayed broadcast of the General Meeting of the holders of bonds issued on March 30, 2017, and held on March 18, 2021 [in French only]

 

Delayed broadcast of the General Meeting of the holders of bonds issued on December 6, 2018, and held on March 18, 2021 [in French only]

 

Delayed broadcast of the General Meeting of the holders of bonds issued on June 18, 2020, and held on March 18, 2021 [in French only]

 

Delayed broadcast of the General Meeting of the holders of bonds issued on March 30, 2017 and held on March 29, 2021 on second call [in French only]

 

Delayed broadcast of the General Meeting of the holders of bonds issued on June 18, 2020, and held on March 29, 2021 on second call [in French only]