Fiscal 2022 Universal Registration Document

4 CONSOLIDATED FINANCIAL STATEMENTS

12.4.1 Borrowings by currency
  FISCAL 2022 FISCAL 2021
(in million euros) CURRENT NON-CURRENT CURRENT NON-CURRENT

Bond issues(1)

        
U.S. dollar (USD) 11 1,212 18 1,056
Euro 7 4,080 613 4,076
Sterling pound 1 289 1 289
TOTAL 19 5,581 631 5,421
Private Placements and bank borrowings        
U.S. dollar (USD) — — — —
Euro 1 — 1 —
Other currencies — — — —
TOTAL 1 — 1 —

Other borrowings(2)

        
Euro 8 55 — 8
Sterling pound 0 8 — 8
Other currencies 6 31 — 14
TOTAL 14 94 — 30
BORROWINGS EXCLUDING DERIVATIVE FINANCIAL INSTRUMENTS 34 5,675 633 5,451

Net fair value of derivative financial instruments(3)

 1 32 (14) 1
BORROWINGS 35 5,707 619 5,453

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(1) Including, as of August 31, 2022, 4,377 million euros bonds issued by Sodexo S.A. and 1,223 million euros bonds issued by Sodexo, Inc.

(2) Of which 78 million euros as of August 31, 2022 (25 million euros as of August 31, 2021) corresponding to liabilities recognized in connection with written put options over non-controlling interests in certain subsidiaries.

(3) Described in note 12.5.

For borrowings other than bond issues, amortized cost is equivalent to historical cost (nominal amount) insofar as no significant transaction costs are incurred.

12.4.2 Bond issues

On April 16, 2021, Sodexo, Inc., U.S. a subsidiary of Sodexo S.A., completed a bond issue of 1.25 billion U.S. dollars structured in two tranches:

  • 500 million U.S. dollars redeemable at par value in April 2026 and bearing interest at an annual rate of 1.634%, with interest payable semi-annually on April and October 16;
  • 750 million U.S. dollars redeemable at par value in April 2031 and bearing interest at an annual rate of 2.718%, with interest payable semi-annually on April and October 16;
    • 375 million (or 50%) of the 750 million U.S. dollars bond due in April 2031 was converted at the time of issuance from fixed to floating rate using interest rate swaps. During fiscal year 2022, Sodexo terminated one of the swaps with a nominal value of 125 million U.S. dollars early and renegotiated the LIBOR-indexed swap, also with a nominal value of 125 million U.S. dollars. Therefore, as of August 31, 2022, 250 million (or 33%) out of the 750 million U.S. dollars obligation is floating rate hedged using interest rate swaps indexed to SOFR rates. The applicable interest rate on these floating interest rate swaps as of August 31, 2022 was 3.15%. Consequently, as of August 31, 2022, the Group no longer has any derivative instruments indexed to indices that are set to be discontinued.

Accrued interest on these bonds amounted to 11 million euros as of August 31, 2022.

On July 17, 2020, Sodexo S.A. issued a bond structured in two tranches:

  • 500 million euros tranche redeemable at par value on January 17, 2024 and bearing interest at an annual rate of 0.5%, with interest payable annually on January 17;
  • 500 million euros tranche redeemable at par value on July 17, 2028 and bearing interest at an annual rate of 1.0%, with interest payable annually on July 17.

Accrued interest on these bonds amounted to 2 million euros as of August 31, 2022.

On April 27, 2020, Sodexo S.A. issued a bond structured in two tranches:

  • 700 million euros tranche redeemable at par value on April 27, 2025 and bearing interest at an annual rate of 0.75%, with interest payable annually on April 27;
  • 800 million euros tranche redeemable at par value on April 27, 2029 and bearing interest at an annual rate of 1.0%, with interest payable annually on April 27.

Accrued interest on these bonds amounted to 5 million euros as of August 31, 2022.

On June 26, 2019, Sodexo S.A. issued bonds for 250 million British pounds Sterling redeemable in June 2028 and bearing interest at an annual rate of 1.75%, with interest payable annually on June 26. Accrued interest on this bond amounted to 1 million euros as of August 31, 2022.

On May 22, 2018, Sodexo S.A. issued bonds for 300 million euros redeemable in May 2025 and bearing interest at an annual rate of 1.125%, with interest payable annually on May 22. Accrued interest on this bond amounted to 1 million euros as of August 31, 2022.

On October 14, 2016 Sodexo S.A. issued bonds for 600 million euros redeemable in April 2027 and bearing interest at an annual rate of 0.75%, with interest payable annually on April 14. On August 1, 2017, the Company increased this issue with an additional 200 million euros of bonds. Accrued interest on these bonds amounted to 2 million euros as of August 31, 2022.