Universal Registration Document 2022

6.6 Notes To The Consolidated Financial statements

Note 29 Risk management

/ December 31, 2021

(in millions of euros)	Level 1	Level 2	Level 3	Total
Short-term liquid investments	Short-term liquid investments Level 1 2,136	Short-term liquid investments Level 2 -	Short-term liquid investments Level 3 -	Short-term liquid investments Total 2,136
Venture Capital Funds and other securities	Venture Capital Funds and other securities Level 1 154	Venture Capital Funds and other securities Level 2 -	Venture Capital Funds and other securities Level 3 12	Venture Capital Funds and other securities Total 166
Derivative instruments – assets	Derivative instruments – assets Level 1 -	Derivative instruments – assets Level 2 21	Derivative instruments – assets Level 3 -	Derivative instruments – assets Total 21
(in millions of euros) Total financial instruments at fair value – assets	Level 12,290	Level 221	Level 312	Total2,323
Derivative instruments – liabilities	Derivative instruments – liabilities Level 1 -	Derivative instruments – liabilities Level 2 128	Derivative instruments – liabilities Level 3 -	Derivative instruments – liabilities Total 128
(in millions of euros) Total financial instruments at fair value – liabilities	Level 1-	Level 2128	Level 3-	Total128

Note 29 Risk management

Exposure to interest rate risk

Groupe 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 2022, the Groupe’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:

97% in fixed-rate loans with an average interest rate for 2022 of 2.8%;
3% in variable-rate loans.

The table below sets out the carrying amount by maturity at December 31, 2022 of the Groupe’s financial instruments exposed to interest rate risk:

		Maturities
(in millions of euros)	Total at December 31, 2022	-1 Year	1-5 Years	+5 Years
Fixed rate
Eurobond 2023⁽¹⁾	499	499	-	-
Eurobond 2024⁽¹⁾	601	-	601	-
Eurobond 2025^{(1) (2)}	747	-	747	-
Eurobond 2028^{(1) (2)}	747	-	-	747
Eurobond 2031^{(1) (2)}	744	-	-	744
Net fixed-rate liabilities (assets)	3,338	499	1,348	1,491
Variable rate
Other borrowings and credit lines	14	10	4	-
Bank overdrafts	1	1	-	-
Cash and cash equivalents	(4,616)	(4,616)	-	-
Other financial assets	(394)	(394)	-	-
Net variable-rate liabilities (assets)	(1,657)	(4,500)	1,352	1,491

Net of issuance costs.
The Eurobond 2025, 2028 and 2031 swaps have the following characteristics:

2025: euro 750 million equivalent, 6-year, weighted average fixed rate at 3.1386%
2028: euro 750 million equivalent, 9-year, weighted average fixed rate at 3.5963%
2031: euro 750 million equivalent, 12-year, weighted average fixed rate at 4.1079%.