Group management determines the allocation of debt between fixed- and variable-rate debt, which is periodically reviewed in terms of interest rate trend forecasts.
At the end of 2019, the Group’s gross borrowings, excluding debt related to earn-out payments and debt relating to commitments to buy-out non-controlling interests (minority interests), consisted of:
The table below sets out the carrying amount by maturity at December 31, 2019 of the Group’s financial instruments exposed to interest rate risk:
|
|
Total at December 31, 2019 |
Maturities |
||||
|---|---|---|---|---|---|---|
| (in millions of euros) |
-1 years |
1-5 years |
+5 years |
|||
|
Fixed rate |
Fixed rate Total at December 31, 2019
|
Fixed rate Maturities
|
|
|
||
|
Eurobond 2021(2)(3) |
Eurobond 2021(2)(3) Total at December 31, 2019 698 |
Eurobond 2021(2)(3) Maturities - |
698 |
- |
||
|
Eurobond 2023(3) |
Eurobond 2023(3) Total at December 31, 2019 495 |
Eurobond 2023(3) Maturities - |
495 |
- |
||
|
Eurobond 2024(1)(3) |
Eurobond 2024(1)(3) Total at December 31, 2019 603 |
Eurobond 2024(1)(3) Maturities - |
603 |
- |
||
|
Eurobond 2025(4)(3) |
Eurobond 2025(4)(3) Total at December 31, 2019 744 |
Eurobond 2025(4)(3) Maturities - |
- |
744 |
||
|
Eurobond 2028(4)(3) |
Eurobond 2028(4)(3) Total at December 31, 2019 745 |
Eurobond 2028(4)(3) Maturities - |
- |
745 |
||
|
Eurobond 2031(4)(3) |
Eurobond 2031(4)(3) Total at December 31, 2019 742 |
Eurobond 2031(4)(3) Maturities - |
- |
742 |
||
|
Medium-term syndicated loan(5) |
Medium-term syndicated loan(5) Total at December 31, 2019 327 |
Medium-term syndicated loan(5) Maturities 327 |
- |
- |
||
|
Net fixed-rate liabilities (assets) |
Net fixed-rate liabilities (assets) Total at December 31, 2019 4,354 |
Net fixed-rate liabilities (assets) Maturities 327 |
1,796 |
2,231 |
||
|
Variable rate |
Variable rate Total at December 31, 2019
|
Variable rate Maturities
|
|
|
||
|
Epsilon medium-term loan;(6) |
Epsilon medium-term loan;(6) Total at December 31, 2019 1,101 |
Epsilon medium-term loan;(6) Maturities - |
1,101 |
- |
||
|
Bank borrowings |
Bank borrowings Total at December 31, 2019 20 |
Bank borrowings Maturities 11 |
9 |
- |
||
|
Bank overdrafts |
Bank overdrafts Total at December 31, 2019 6 |
Bank overdrafts Maturities 6 |
- |
- |
||
|
Cash and cash equivalents |
Cash and cash equivalents Total at December 31, 2019 (3,413) |
Cash and cash equivalents Maturities (3,413) |
- |
- |
||
|
Other financial assets |
Other financial assets Total at December 31, 2019 (646) |
Other financial assets Maturities (646) |
- |
- |
||
|
Net variable-rate liabilities (assets) |
Net variable-rate liabilities (assets) Total at December 31, 2019 (2,932) |
Net variable-rate liabilities (assets) Maturities (4,042) |
1,110 |
- |
||
(1) The Eurobond 2024 swaps have the following characteristics:
•
euro 300 million equivalent, 10-year, fixed rate at 2,994%;
• euro 300 million equivalent, 10-year, fixed rate at 2.965%
(2) The Eurobond 2021 swaps have the following characteristics:
• euro 350 million equivalent, 7-year, fixed rate at 2,921%;
• euro 350 million equivalent, 7-year, fixed rate at 2.918%.
(3) Net of issuance costs
(4) The Eurobond 2025, 2028 and 2031 swaps have the following characteristics:
• 2025: euro 750 million equivalent, 6-year, at 3.1386% weighted average fixed rate;
• 2028: euro 750 million equivalent, 9-year, at 3.5963% weighted average fixed rate;
• 2031: euro 750 million equivalent, 12-year, at 4.1079% weighted average fixed rate.
(5) Variable-rate to fixed-rate interest rate swaps purchased in 2017 on the US dollar component (USD 555 million) (see Note 24)
(6) The medium-term loan (Epsilon acquisition financing) has three tranches (USD 900 million plus two euro 150 million tranches) at variable LIBOR (for the USD tranche) and EURIBOR (for the euro tranches) plus credit spread.
