Debt and invested funds

Rating  Rating

Edenred is rated BBB+/A-2; Outlook stable, i.e. “Strong Investment Grade” by Standard & Poor’s. The rating has been confirmed by Standard & Poor’s as of May 10, 2019.

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

• the business profile of the Group, rated “Strong”, reflecting its leading services and payments platform and the everyday companion for people at work;
• 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 2019  Debt structure at end December 2019

Confirmed lines of credit

At December 31, 2019, Edenred had a €700 million undrawn confirmed line of credit, expiring at the end of July 2023. This facility will be used for general corporate purposes.

On February 12, 2020, the syndicated credit facility was renegotiated. The amount now stands at €750 million and the maturity has been extended by five years to February 2025, with two new one-year extension options. New non-financial performance covenants have been added to the facility agreement in exchange for a reduction in the interest rate. The two performance criteria – promoting balanced nutrition and reducing greenhouse gas (GHG) emissions intensity – are aligned with the three axes of the Group’s ESG strategy (People, Planet, Progress).

Investments  Investments

The Group’s negative working capital amounted to €4.1 billion as of December 31, 2019.

Negative working capital (WC) breakdown as of December 31, 2019

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, 2019

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:

• 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.

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