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Renault SA refinances most of its automobile business on the capital markets, chiefly through long-term funding (bond issues, private placements) excluding the French State Loan of 3 billions euros. This provides the Automobile Division with a minimum level of liquid funds at all times. As initially announced, Renault made an early repayment in two installments (February and April 2011) of the remaining 2 billions € on the loan provided by the French government in April 2009.

Debt Profile 

Maturity schedule for Renault SA bonds and equivalents at December 31, 2010 (excluding French State Loan, in EUR million)
  • To diversify its long-term funding sources, Renault SA has developped its presence into the Samourai bond market in Japan (yen-denominated bonds issued in Japan by non-Japanese entities). Renault SA has a Shelf program which will come to maturity in June 2012. It has issued a new Samourai bond in December 2010, reopening this market which had been closed to Renault since January 2008 (45 GJPY. Maturity 2 years). A total number of 9 Samourai issues has already been realized.
  • The EMTN* program was updated in June 2011. The ceiling still being  EUR 7 billion. Renault SA has issued in 2010 two eurobonds for a global amount of 1 150 M€.

At december 31, 2010 Renault SA's debt was spread evenly across a maturity spectrum ranging from 1 to 7 years.

 

* Euro Medium Term Note: documentation issued by a company planning to issue bonds. Similar to a prospectus, the documentation provides information about all the issues the entity is intending to make. With an EMTN program, the company can tap the market whenever it needs funding or when conditions are attractive.