Financing and rating
We implement a conservative financial policy to sustain high levels of performance. The stability of the tariff framework set by the French Energy Regulatory Commission (CRE) has enabled us to keep our finances balanced. Thanks to our reliable economic model, we have access to highly competitive financing rates. We have subsidised the majority of our own projects, investing 1,4 trillion Euros in 2019.
In addition to the above, we have access to four diversified sources of funding:
- A medium-and long-term loan programme known as EMTN (Euro Medium Term Note) introduced in 2006. The aggregate nominal amount of Notes outstanding is € 10 billion.
- Credit lines with the European Investment Bank (EIB): In June 2015, RTE and the EIB signed a new financing agreement to continue optimising the French transmission network. Funding by the EIB as of December 31, 2019 amounts to 1.350 €M.
- Short-term loans in the form of treasury notes eligible for Banque de France transactions.
- Credit facilities: Succeeding to the previous credit facility, RTE has a 1.5 billion euro syndicated credit facility agreed with a pool of 11 leading banks. This facility due to mature in June 2023.
Read more about our different financing methods.
Medium and long-term loans
When RTE was set up, an EMTN loan programme (Euro Medium Term Note) signed by the Financial Markets Authority (FMA) was implemented on 1 September 2006. It forms the legal basis for RTE bond issues. Registered in Paris, it is updated once a year (FMA signature 20-286 of 26 June 2020). The aggregate nominal amount of Notes outstanding is € 10 billion.
Loans issued by the European Investment Bank (EIB)
Since 2009, RTE has had a credit line of 400 million Euros, used to finance various network development projects
In October 2011 and February 2012, RTE signed loan agreement in two instalments with the EIB for a total of 175 million Euros: this loan is being used to finance the France/Spain interconnector, the first terrestrial trans-European direct current link using innovative converter technology.
In March 2013, RTE and the EIB signed a new financing agreement to optimise the French electricity transmission network. RTE has a 500 million-Euro credit line of which the first instalment (300 million Euros) was signed on 20 March 2013 and the second instalment (200 million Euros) on 24 April 2014.
In June 2015, RTE and the European Investment Bank (EIB) have strengthened their partnership by signing a new EUR 500 million loan agreement. This contract will help finance 35 projects carried out over a period of 5 years. These are designed to strengthen the security of supply, improve the quality of electricity and enhance the power grid's contribution to a successful energy transition. The EIB will cover around 40% of the investment costs of the 35 projects selected in a variety of French regions (EUR 1.2 billion).
Since 2006, RTE has subscribed to a programme of treasury notes eligible for Banque de France transactions. The maximum amount that can be used under this programme is 1.5 billion Euros.
Succeeding to the previous credit facility, RTE has a 1.5 billion euro syndicated credit facility agreed with a pool of 11 leading banks. This facility due to mature in June 2023.