EDF Launches Tender Offer and New Green Hybrid Notes Issue

EDF (BBB positive S&P / Baa1 stable Moody’s / BBB+ stable Fitch) has announced a tender offer for two outstanding series of hybrid notes. The two series involved are the €1,000,000,000 reset perpetual subordinated notes and the £1,250,000,000 reset perpetual subordinated notes, both with first redemption options in January 2026. The tender offer results will be revealed on 18 September 2024, subject to any potential changes.

In addition, EDF intends to exercise the redemption option for perpetual subordinated notes issued in January 2013, valued at 1,250 million euros, by leveraging the equity from its 2023 capital increase. This aims to minimize the need for refinancing a substantial part of the notes with new hybrid debt.

EDF also plans to issue new euro and sterling-denominated green perpetual subordinated notes under its EMTN programme. The proceeds will fund projects aligned with EDF’s Green Financing Framework, focusing on extending the lifetime of existing nuclear reactors in France.