Under the Euro Medium Term Note Programme ... - Finance - EDF

Risk Factors
The market price of RMB Notes may be adversely affected by declines in the international
financial markets and world economic conditions. The market for RMB denominated
securities is, to varying degrees, influenced by economic and market conditions in other
markets, especially those in Asia. Although economic conditions are different in each
country, investors’ reactions to developments in one country can affect the securities
markets and the securities of issuers in other countries, including the PRC. Since the subprime
mortgage crisis in 2008, the international financial markets have experienced
significant volatility. Should similar developments occur in the international financial markets
in the future, the market price of RMB Notes could be adversely affected.
The Issuer may make payments of interest and principal in U.S. dollars in certain
circumstances
Although the primary obligation of the Issuer is to make all payments of interest and principal
with respect to the RMB Notes in Renminbi, in the event access to Renminbi deliverable in
Hong Kong becomes restricted to the extent that, by reason of Inconvertibility, Nontransferability
or Illiquidity (each as defined the Terms and Conditions of the Notes) the
Issuer would not be able, or it would be impracticable for it to pay interest or principal under
such RMB Notes in Renminbi in Hong Kong, the terms of such RMB Notes allow the Issuer
to make such payment in U.S. dollars at the prevailing spot rate of exchange, all as provided
for in more detail in the Terms and Conditions of the Notes. As a result, the value of such
payments in Renminbi may vary with the prevailing exchange rates in the marketplace. If the
value of the Renminbi depreciates against the U.S. dollar the value of a Noteholder’s
investment in U.S. dollar will decline.
B. RISK FACTORS RELATING TO THE ISSUER AND ITS OPERATIONS
The Issuer believes that the following factors may affect its ability to fulfil its obligations under
Notes issued under the Programme. All of these factors are contingencies which may or may
not occur and the Issuer is not in a position to express a view on the likelihood of any such
contingency occurring. The risk factors may relate to the Issuer or any of its subsidiaries.
In addition, factors which are material for the purpose of assessing the market risks
associated with Notes issued under the Programme are also described below.
The Issuer believes that the factors described below represent the principal risks inherent in
investing in Notes issued under the Programme, but the inability of the Issuer to pay interest,
principal or other amounts on or in connection with any Notes may occur for other reasons
and the Issuer does not represent that the statements below regarding the risks of holding
any Notes are exhaustive. The risks described below are not the only risks the Issuer faces.
Additional risks and uncertainties not currently known to the Issuer or that it currently
believes to be immaterial could also have a material impact on its business operations.
Prospective investors should also read the detailed information set out elsewhere in this
Base Prospectus and reach their own views prior to making any investment decision. In
particular, investors should make their own assessment as to the risks associated with the
Notes prior to investing in Notes issued under the Programme.
References to sections in the factors described below are, where applicable, references to
sections of the 2011 Document de Référence of the Issuer (see "Documents Incorporated by
Reference").
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