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20.2 Notes to the consolidated financial statements for the year ended December 31, 2016
FINANCIAL INFORMATION CONCERNING ASSETS,
FINANCIAL POSITION AND FINANCIAL PERFORMANCE
20
LIQUIDITY RISK
The group’s liquidity in 2016 was ensured by draws on available lines of credit in
the amount of approximately 2 billion euros on January 4 and 5, 2016.
At December 31, 2016, AREVA’s short-term borrowings amounted to 831 million
euros, consistingmainly of bilateral lines of credit maturing over the course of 2017.
In addition, AREVA guarantees NewCo’s borrowings (bond debt and financing of
the Georges Besse II industrial asset in the total amount of 5.5 billion euros) until
the execution of the NewCo capital increase planned in 2017.
Beyond 2017, the last maturity of AREVA’s significant debt consists of the
reimbursement of the syndicated line of credit of 1.25 billion euros in January 2018.
As mentioned previously, on January 10, 2017, the European Commission
authorized rescue aid in the form of two advances from the shareholder current
account of the French State, one for AREVA in the amount of 2 billion euros and
the other for NewCo in the amount of 1.3 billion euros.
In addition, in early February 2017, AREVA SA secured and accepted a commitment
from its banking partners for “senior secured” interim financing of 300 million
euros, expected to be signed in the near future and maturing on January 8, 2018.
Draws on this financing will be conditioned on the French State’s subscription to
the AREVA SA and New AREVA Holding capital increases.
Furthermore, AREVA SA secured the necessary consent from the lenders of the
syndicated credit of 1.250 billion euros, maturing on January 16, 2018, to proceed
with the NewCo capital increase and authorize de facto the loss of control. In
return for this consent, the lenders of that facility receive better terms, including an
additional security and early repayment clauses, in particular as regards the income
from the sale of AREVA NP.
CREDIT RISK
AREVA’s only exposure to credit risk is through its investments of cash surpluses
in marketable securities and in mutual funds or money market funds. Investment
in these marketable securities is subject to limits of exposure based on the issuer’s
rating (short-term rating of Investment Grade). The group’s management approves
these limits. As regards mutual funds and money market funds, the group invests
its cash surpluses only subject to limits of exposure based on the issuer’s rating
(under criteria as described above) and in investment vehicles with an average
duration of less than 3 months.
MARKET VALUE OF FINANCIAL INSTRUMENTS
The market value of financial instruments pertaining to currency, rate and
commodity transactions are calculated based onmarket data as of the closing date,
on discounted future cash flows, or on prices provided by financial institutions. The
use of different market assumptions could have a significant impact on estimated
market values.
2016 AREVA
REFERENCE DOCUMENT
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