Note 28 - Debt
28.1 BREAKDOWN OF DEBT
The Group’s total debt breaks down as follows
| 31 Dec. 2020 | 31 Dec. 2019 | ||
| Bonds | 1,293 | 1,291 | |
| Bank loans | 307 | 450 | |
| Debt related to put options granted to minority shareholders | 24 | 12 | |
| Medium-term notes (NEU MTN(*)) | - | 64 | |
| Other debt | 19 | 17 | |
| Non-current debt excluding financial instruments designated as hedges of debt | 1,643 | 1,834 | |
| Financial instruments designated as hedges of debt | - | 8 | |
| Non-current debt | 1,643 | 1,842 | |
| Bonds | - | - | |
| Bank loans | 158 | 13 | |
| Syndicated credit facility | 300 | - | |
| Debt related to put options granted to minority shareholders | - | - | |
| Medium-term notes (NEU MTN(*)) | 64 | - | |
| Commercial paper (NEU CP(**)) | 158 | 449 | |
| Other debt | 113 | 70 | |
| Current debt excluding financial instruments designated as hedges of debt | 793 | 532 | |
| Financial instruments designated as hedges of debt | - | - | |
| Current debt | 793 | 532 | |
| Total debt | 2,436 | 2,374 | |
(*) Negotiable Euro Medium-Term Notes.
(**) Negotiable European Commercial Paper.
The main movements in debt during 2020 were as follows:
- Lagardère SCA had drawn down €300 million on its syndicated credit facility at 31 December 2020. On 18 December 2020, the Group signed an agreement to amend and extend its syndicated credit facility (see note 29.1.1 for further details). Liquidity risks.
- Continuation of the commercial paper (NEU CP) programme with a ceiling of €850 million. Debt issues under the programme represented €158 million at 31 December 2020 compared with €449 million at 31 December 2019.
- Continuation of the Negotiable Euro Medium-Term Notes programme with a ceiling of €200 million. At 31 December 2020, debt issuance under the programme represented €64 million due within one year.
Movements in liabilities arising from financing activities – which include the breakdown of movements in debt presented in the statement of cash flows – can be analysed as follows:
| 31 Dec. 2019 | Cash flows | Changes in scope of consolidation | Effect of changes in exchange rates | Changes in fair value | Other movements | 31 Dec. 2020 | |
| Bonds | 1,291 | - | - | - | - | 2 | 1,293 |
| Bank loans | 450 | (3) | 2 | - | - | (142) | 307 |
| Medium-term notes (NEU MTN(*)) | 64 | 2 | - | - | - | (66) | - |
| Other debt | 17 | 2 | (3) | - | - | 3 | 19 |
| Financial instruments designated as hedges of debt | 8 | - | - | - | - | (8) | - |
| Non-current liabilities arising from financing activities | 1,830 | 1 | (1) | - | - | (211) | 1,619 |
| Bonds | - | - | - | - | - | - | - |
| Bank loans | 13 | 2 | - | (1) | - | 144 | 158 |
| Syndicated credit facility | - | 300 | - | - | - | - | 300 |
| Commercial paper and debt securities(NEU MTN(*) and NEU CP(**)) | 449 | (293) | - | - | - | 66 | 222 |
| Other debt | 8 | 1 | 1 | 1 | - | 2 | 13 |
| Financial instruments designated as hedges of debt | - | - | - | - | - | - | - |
| Current liabilities arising from financing activities | 470 | 10 | 1 | - | - | 212 | 693 |
| Total liabilities arising from financing activities(***) | 2,300 | 11 | - | - | - | 1 | 2,312 |
| Debt related to put options granted to minority shareholders | 12 | - | (10) | - | - | 22 | 24 |
| Short-term bank loans and overdrafts | 45 | 54 | (1) | (7) | - | (9) | 82 |
| Accrued interest | 17 | (5) | - | - | 10 | (4) | 18 |
| Total debt | 2,374 | 60 | (11) | (7) | 10 | 10 | 2,436 |
(*) Negotiable Euro Medium-Term Notes.
(**) Negotiable European Commercial Paper.
(***) Net cash flows of total liabilities arising from financing activities for €11 million correspond to increases (€334 million) and decreases (€323 million) shown in the consolidated statement of cash flows.
Net debt breaks down as follows:
| (in millions of euros) | 31 Dec. 2020 | 31 Dec. 2019 | |||||
| Short-term investments and cash and cash equivalents | 687 | 913 | |||||
| Financial instruments designated as hedges of debt with a positive fair value | 16 | - | |||||
| Non-current debt(*) | (1,643) | (1,842) | |||||
| Current debt | (793) | (532) | |||||
| Net debt | (1,733) | (1,461) | |||||
(*) At 31 December 2019, non-current debt included financial instruments designated as hedges of debt with a negative fair value, representing €8 million.
28.2 ANALYSIS OF DEBT BY MATURITY
Debt breaks down as follows by maturity at 31 December 2020:
| 2021(*) | 2022 | 2023 | 2024 | 2025 | Beyond 5 years | Total | |
| Bonds | - | - | 498 | 298 | - | 497 | 1,293 |
| Bank loans | 158 | 49 | 1 | 187 | 1 | 69 | 465 |
| Financial instruments designated as hedges of debt | - | - | - | - | - | - | - |
| Syndicated credit facility | 300 | - | - | - | - | - | 300 |
| Debt related to put options granted to minority shareholders | - | 1 | - | 2 | - | 21 | 24 |
| Commercial paper(**) | 222 | - | - | - | - | - | 222 |
| Other debt | 113 | 8 | 2 | 2 | 2 | 5 | 132 |
| At 31 December 2020 | 793 | 58 | 501 | 489 | 3 | 592 | 2,436 |
(*) Debt due within one year is reported in the consolidated balance sheet under “Current debt”.
(**) Commercial paper and medium-term notes.
Debt breaks down as follows by maturity at 31 December 2019:
| 2020 (*) | 2021 | 2022 | 2023 | 2024 | Beyond 5 years | Total | |
| Bonds | - | - | - | 497 | 298 | 496 | 1,291 |
| Bank loans | 13 | 147 | 50 | - | 187 | 66 | 463 |
| Financial instruments designated as hedges of debt | - | - | - | 1 | 7 | - | 8 |
| Debt related to put options granted to minority shareholders | - | 3 | - | 3 | - | 6 | 12 |
| Commercial paper(**) | 449 | 64 | - | - | - | - | 513 |
| Other debt | 70 | 1 | 4 | 1 | 2 | 9 | 87 |
| At 31 December 2020 | 532 | 215 | 54 | 502 | 494 | 577 | 2,374 |
(*) Debt due within one year is reported in the consolidated balance sheet under “Current debt”.
(**) Commercial paper and medium-term notes.
28.3 CHARACTERISTICS OF BONDS AND MAIN BANK LOANS
The following tables provide an analysis of bonds and bank loans:
| 31 December 2020 | Carrying amount | Value of hedging instruments(*) | Total | Effective interest rate(**) |
| 13 April 2016 seven-year bond issue, for €500 million | 498 | (9) | 489 | 2.90% |
| 21 June 2017 seven-year bond issue, for €300 million | 298 | (2) | 296 | 1.81% |
| 16 October 2019 seven-year bond issue, for €500 million | 497 | (5) | 492 | 2.26% |
| Bonds | 1,293 | (16) | 1,277 | |
| Syndicated credit facility | 300 | - | 300 | |
| Other debt | 465 | - | 465 | |
| Bank loans | 765 | - | 765 | |
| Total | 2,058 | (16) | 2,042 |
(*) Fair value of derivative instruments designated as hedges of debt.
(**) The effective interest rate on bonds includes the amortisation of the bond issue costs.
| 31 December 2019 | Carrying amount | Value of hedging instruments(*) | Total | Effective interest rate(**) |
| 13 April 2016 seven-year bond issue, for €500 million | 497 | 1 | 498 | 2.90% |
| 21 June 2017 seven-year bond issue, for €300 million | 298 | 7 | 305 | 1.81% |
| 16 October 2019 seven-year bond issue, for €500 million | 496 | - | 496 | 2.26% |
| Bonds | 1,291 | 8 | 1,299 | |
| Other debt | 463 | - | 463 | |
| Bank loans | 463 | - | 463 | |
| Total | 1,754 | 8 | 1,762 |
(*) Fair value of derivative instruments designated as hedges of debt.
(**) The effective interest rate on bonds includes the amortisation of the bond issue costs.
28.4 ANALYSIS OF DEBT BY CURRENCY
The following table provides a breakdown of current- and non-current debt by currency before and after hedging:
| 31 December 2020 | Before hedging | After hedging | ||
| % | % | |||
| Eurozone | 2,364 | 97.0 | 1,632 | 67.0 |
| US dollar | 3 | 0.1 | 465 | 19.1 |
| Pound sterling | 32 | 1,3 | 75 | 3.1 |
| Australian dollar | - | 0.0 | 29 | 1.2 |
| Canadian dollar | - | 0.0 | 68 | 2.8 |
| Other | 37 | 1.6 | 167 | 6.8 |
| Total | 2,436 | 100.0 | 2,436 | 100.0 |