The capital increases are today difficult

EDF is preparing to seek savings by the French. According to the newspaper "Le Monde", the Habs electrician works on the issuance of a large bond to individuals. Several banks of network, including the Société Générale, BNP Paribas and Credit Agricole, would participate in the development of this operation, which would however be in its infancy. "Nothing has yet been fixed: or the amount of the loan, financial conditions, nor the date of its launch, but some would be surprised that it be scheduled before the summer", indicates the evening paper. Information that EDF has not wished to comment, but confirmed by a close source of the company.

Why this initiative EDF will have to address important financing needs in the years to come. The revival of nuclear power in France and abroad will first weigh on accounts. Alone, the construction of the plant of Flamanville (handle) will require the order of EUR 4 billion. In Britain, the nuclear programme launched by the Government should also involve investments of 15 to 20 billion euros for the French group. The electrician then conducted last year with important acquisitions that brought his debt of EUR 16.2 billion to 24.5 billion within a year. EDF acquired British British Energy for approximately EUR 15 billion and half of the nuclear activities of the US group Constellation Energy to 3.5 billion euros.

A diversification strategy

So far, the company does not have the knife to the throat. Quite the contrary. Since the beginning of the year, the company had no difficulty in placing three bond issues for institutional investors. EDF remains a signature quality. The Group raised 15 billion euros in 2008-2009, of which 7.8 billion since January. "After already realized emissions, EDF has more need to appeal to the bond market to refinance this year", said a credit analyst.

Under these conditions, why have recourse to the individual market In fact, this initiative fits in a strategy of diversification of sources of funding. The capital increases are today difficult. Banks have tightened their credit facilities. And bonds to institutional investors are already very used. Where the use of French households.

As with several groups of the CAC 40, EDF also seeks to reduce its exposure to banks and financial system which it is not yet sure that he is back on foot. This attitude marks a historical shift in the way that large French companies today manage their cash flow.

This project finally signs the return to grace of the segment of individuals. In recent years, this type of borrowing was largely abandoned by the hexagonal groups. The process was deemed too long, too complicated and too expensive. "Until the bankruptcy of Lehman Brothers, cash managers felt the liquidity as abundant and inexpensive." "They have now integrated the idea that she had a cost," said credit analyst. E.on conducted a bond for the individuals in the fall. GDF Suez was in Belgium at the beginning of the year. In France, the EDF project should probably result in initiatives of the same kind in 2009 or 2010.