Fiscal 2021 Universal Registration Document

13.3 Exposure to liquidity risk

The nature of the Group’s bank borrowings and bond issues as of August 31, 2021 is described in detail in note 12.4.

As of August 31, 2021 , and as of August 31, 2020 , more than 99% of the Group’s consolidated borrowings was raised on capital markets and bank financing covered less than 1% of the Group’s financing needs. The maturity dates of the main borrowings range between Fiscal 2022 and Fiscal 2031.

13.4 Exposure to counterparty risk

Exposure to counterparty risk is limited to the carrying amount of financial assets.

Group policies and procedures are to manage and spread counterparty risk. For derivative financial instruments, each transaction with a bank is required to be based on a master contract modelled on the standard contract issued by the French Bankers’ Association (AFB) or the International Swaps and Derivatives Association (ISDA).

Counterparty risk relating to client accounts receivable is immaterial. Due to the Group’s geographic and segment spread, there is no concentration of risk on past due individual receivables for which no provision has been recorded. Given the degradation in the economic environment resulting from the Covid-19 pandemic, the Group has reinforced its credit risk tracking.

Thus, the Group did not record any significant change in the impacts related to the proven financial failures of its customers during the year. The net carrying amount of overdue receivables amounts to 476 million euro, of which 58 million are beyond 6 months (1.6% of total net accounts receivable as of August 31, 2021 vs. 2% as of August 31, 2020 ).

The main counterparty risk is bank-related. The Group has limited its exposure to counterparty risk by diversifying its investments and limiting the concentration of risk held by each of its counterparties. Transactions are conducted with highly creditworthy counterparties taking into consideration country risk. The Group has instituted a regular reporting of the risk spread between counterparties and of their quality.

To reduce this risk further, in Fiscal 2011 the Group implemented an international cash pooling mechanism between its main subsidiaries (with a netting facility), reducing the amount of liquidity held by third parties by concentrating it in the Group’s financial holding companies.

The maximum counterparty represents approximately 17% (13% as of August 31, 2020 ) of the Group’s operating cash (including restricted cash and financial assets related to the Benefits & Rewards Services activity) and is with a banking group whose rating is A-1.

NOTE 14. OTHER INFORMATION

14.1 Subsequent events

On October 26, 2021, the Group has early redeemed in full its outstanding 600 million euro bonds with ISIN XS1080163709 issued in June 2014, bearing an annual interest coupon of 1.75% and due to mature on January 24, 2022. This redemption without penalties reduces the cost of debt and the non performing surplus cash deposits.

14.2 Commitments and contingencies

14.2.1 Sureties

Commitments arising from surety arrangements (pledges, charges secured against plant and equipment, and real estate mortgages) contracted by Sodexo S.A. and its subsidiaries in connection with operating activities during Fiscal 2021 are not material.

14.2.2 Other commitments given