VINCI - 2005 annual report

All the companies shown in the above table not fully owned by VINCI and
are financed autonomously with no guarantee from VINCI. They do not
participate in the holding company cash pooling system.
Furthermore, concessions for major infrastructure and Private Finance
Initiative projects, under the British public-private partnership arrangements,
use project finance afforded to companies formed specifically for
that purpose. The repayment of such finance, which is backed by the
concession contracts, is thus ensured solely from the cash flows generated
by each project.
25.3 FINANCING RESOURCES
25.3.1 Commercial paper programme and credit facilities
a. Commercial paper programme
Commercial paper issued by VINCI SA is included in current financial
debt.
At 31 December 2005, VINCI SA had a commercial paper programme of
€700 million to ensure its short-term financing. This was increased to €1.5
billion in February 2006. The programme is rated A2 by Standard & Poor’s
b. Unused credit facilities
At 31 December 2005, VINCI SA had an unused bank credit facility (Club
Deal) of €2 billion.
This bank credit facility was agreed in March 2005 by VINCI with its eight
main banks for €1.5 billion, which was increased to €2 billion in July
2005. It is for a 5-year term that can be extended for a further two years
and is not subject to any covenant.
The balance of €835 million represents credit facilities with individual
banks, agreed on the same conditions as the Club Deal.
Maturity
(in € millions) 31/12/2005 within 1 year between 1 and 5 years between 5 and 7 years
VINCI 2,835 2,835
Cofiroute 1,020 1,020
c. Financing agreements for the acquisition of ASF
On 5 November 2005, VINCI took out two loans for the acquisition of
the shares in ASF that it did not own at 31 December 2005.
– a 7-year acquisition loan of €4.2 billion.
This loan is at a floating rate of interest, the spread depending, from
31 December 2006, on the ratio between the net financial debt of nonconcession
activities and the cash flows from operations generated by
those activities plus the dividends received by holding companies from
the Concessions business lines. VINCI undertakes to meet a minimum
level in respect of this ratio throughout the period of this loan, failing
which the loan will become repayable.
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VINCI 2005 ANNUAL REPORT
CFE’s debt is mainly in its dredging subsidiary DEME of which it owns
50%, VINCI’s indirect holding therefore being 22.7%. DEME’s debt, which
is without recourse against CFE, mainly relates to the financing of dredgers.
The debts of CFE and DEME are without recourse against VINCI.
and P2 by Moody’s. At 31 December 2005, €493 million had been issued,
compared with €17 million at 31 December 2004.
Cofiroute also has a commercial paper programme of €450 million, rated
A1 by Standard & Poor’s. This was not being used at 31 December 2005.
Cofiroute has a confirmed unused credit facility of €1 billion.
The maturities of VINCI’s and Cofiroute’s credit lines were as follows at
31 December:
– a 20-month bridging loan of €2.3 billion.
This loan is at a floating rate of interest, the spread depending, from
30 September 2006, on the ratio between the net financial debt of nonconcession
activities and the cash flows from operations generated by
those activities plus the dividends received by holding companies from
the Concessions business lines. There is no financial covenant in respect
of this loan.