Rating, 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 A- Outlook Stable, i.e. “Strong Investment Grade” by Standard & Poor’s. The rating has been upgraded by Standard & Poor’s on April 24, 2023.

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 June 2023

Breakdown of net debt

As of December 31, 2023
In € million

[read the chart text description]

Breakdown by type of debt

In € million

Bonds: 3300, convertible bonds: 900, banking: 37

Total Gross Debt: 4,237 million euros

[read the chart text description]

 

Breakdown by type of interest rate

After hedging

Variable rate: 35%, fixed rate: 65%

[read the chart text description]

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
03/30/2017 EUR 500 1.875% 03/30/2027
10 years
03/10/2015 EUR 500 1.375% 03/10/2025
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% 09/06/2024
5 years

Breakdown by maturity

In € million

Breakdown of debt by maturity (2024 through 2031)

[read the chart text description]

1. Undrawn committed revolving credit facility tied to ESG criteria for €750m

Gross debt cost as of December 31, 2023

Before hedging 1.9%
After hedging 3.4%

 

Confirmed lines of credit

As of December 31, 2023, Edenred had a €750 million undrawn confirmed line of credit, expiring at the end of February 2027. This facility will be used for general corporate purposes.

Investments

The Group’s negative working capital amounted to €5.4 billion as of December 31, 2023.

 

Negative working capital (WC) breakdown as of December 31, 2023

In € million

Free negative working capital: 3370; Restricted cash*: 2073

[read the chart text description]

* 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, 2023

By maturity

Less than one year: 68%, more than one year: 32%

[read the chart text description]

By geography

Europe: 73%, Latin America: 23%, Rest of the World: 4%

[read the chart text description]

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)

2023

2024

Other bond issues prospectus

ISIN code Amount (in € million) Rating (Standard & Poor's) Annual coupon Maturity Press release Official prospectus
06/09/23 FR001400IIT5 500 A- 3.625% 3 years 6 months 12/13/2026 PDF (93 KB) PDF (2 MB)
06/09/23 FR001400IIU3 700 A- 3.625% 8 years 06/13/2031 PDF (93 KB) PDF (2 MB)
06/18/20 FR0013518537 600 A- 1.375% 9 years 06/18/2029 PDF (86 KB) PDF (997 KB)
12/06/18 FR0013385655 500 A- 1.875% 7 years 3 months 03/06/2026 PDF (104 KB) PDF (1 299 KB)
03/30/17 FR0013247202 500 A- 1.875% 10 years 03/30/2027 PDF (311 KB) PDF (647 KB)
03/10/15 FR0012599892 500 A- 1.375% 10 years 03/10/2025 PDF (200 KB) PDF (331 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]

Minutes of the GM of the holders of bonds issued on May 23, 2012, and held on March 18, 2021 [in French only] (PDF, 135 KB)

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]

Minutes of the GM of the holders of bonds issued on March 10, 2015, and held on March 18, 2021 [in French only] (PDF, 135 KB)

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]

Minutes of the GM of the holders of bonds issued on March 30, 2017, and held on March 18, 2021 [in French only] (PDF, 83 KB)

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]

Minutes of the GM of the holders of bonds issued on December 6, 2018, and held on March 18, 2021 [in French only] (PDF, 135 KB)

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]

Minutes of the GM of the holders of bonds issued on June 18, 2020, and held on March 18, 2021 [in French only] (PDF, 83 KB)

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]

Minutes of the GM of the holders of bonds issued on March 30, 2017, and held on March 29, 2021 on second call [in French only] (PDF, 128 KB)

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]

Minutes of the GM of the holders of bonds issued on June 18, 2020, and held on March 29, 2021 on second call [in French only] (PDF, 127 KB)