arrow-thincheckemaillocationphone

You are here

Debt and investments

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. 

On this section, access to

 

Rating  Rating

Edenred has been rated BBB+/A-2; Outlook stable, i.e. “Strong Investment Grade” by Standard & Poor’s on June 9, 2010. The rating has been confirmed by Standard & Poor’s in a press release dated April 27, 2017.
This rating is based on a multi-criteria analysis, appraising:

  • the business profile of the Group, rated “Strong”, reflecting the Edenred’s worldwide leadership position and its growth prospects.
  • its financial position, rated “Intermediate”, in respect of Edenred’s sustainable financial position and its cash-flows generating business model.

Debt structure at end December 2017  Debt structure at end December 2017

Breakdown of net debt

 

Breakdown by type of debt

 

Breakdown by type of interest rate

 

Amount (in €million)">
Focus on bonds issues
Issue date Currency Amount (in million) Annual coupon Maturity
3/30/2017 EUR 500 1.875%

3/30/2027
10 years

3/10/2015 EUR 500 1.375%

3/10/2025
10 years

10/30/2013 EUR 250 2.625% 10/30/2020
7 years
5/23/2012 EUR 225 3.750% 5/23/2022
10 years

 

 

Breakdown by due date

 

Gross debt cost as of December 31, 2017

   
Before hedging 2.74 %
After hedging 1.78 %

 

Confirmed lines of credit

At December 31, 2017, Edenred had €700 million in undrawn confirmed lines of credit, expiring at the end of July 2022. This facility will be used for general corporate purposes.

On July 6, 2017, the maturity of the €700 million syndicated credit facility expiring on July 21, 2021 was extended by one year, in line with the 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 July 2022.

Investments  Investments

The Group’s negative working capital amounted to €3.1 billion at December 31, 2017.

Negative WC breakdown as of December 31, 2017

* 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, 2017

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:

  • dealing only with leading counterparties according to correlated country risks;
  • using a wide range of counterparties;
  • setting exposure limits by counterparty;
  • using a monthly reporting procedure to track the concentration of counterparty risk and the credit quality of the various counterparties (based on their credit ratings).

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.

Bond issues prospectus
Issue date Currency Amount (in million) Rating
(Standard & Poor's)
Annual coupon Maturity Press release Official
prospectus
3/22/17 EUR 500 BBB+ 1.875%  10 years

3/10/15 EUR 500 BBB+ 1.375% 10 years

10/30/13 EUR 250 BBB+ 2.625% 7 years

5/23/12 EUR 225 BBB+ 3.750% 10 years