Debt structure

HP-Mercure-Wuhan-Changqing-Park-Chine

As at December 31, 2021, the Group has two undrawn committed credit lines for a total of €1,760 million, of which a €1,200 million credit line, negotiated in June 2018, maturing in June 2025 and in June 2024 and a €560 million credit line negotiated in May 2020, maturing in May 2022.

The €1,200 million undrawn facility contained, at contract inception, an early repayment clause that can be triggered in the event of non-compliance with a financial leverage ratio (consolidated net debt [1] to consolidated EBITDA). In the context of the pandemic, Accor obtained a covenant holiday until June 2022. Since November 15, 2021, this covenant has been replaced by a minimum liquidity covenant, applicable for the years 2022 and 2023. From 2024, the initial "Leverage ratio" will apply again.

On November 18, 2021, the Group issued a bond indexed to the Group’s sustainable development objectives (Sustainability-Linked Bond) for €700 million, with a 2.375% coupon, maturing in November 2028.

This new financing enabled a partial repayment of €206 million and €243 million on the bonds maturing in 2023, issued in September 2015, and maturing in 2024, issued in January 2017 respectively.

Accor has a short-term financing program in the form of commercial papers (NEU CP) capped at €500 million. As at December 31, 2021, this program is drawn for €302 million.

As at December 31, 2021, 78% of bonds and bank borrowings were at fixed rate, with an average rate of 2.0%, and 22% were at a variable rate, with an average rate of 2.2%. The fixed rate debt is denominated primarily in Euro (89%).

[1] Restated for lease liabilities (IFRS 16)

Bond issues

As of end-August 2021, bond issues break down as follows:

Senior Bonds

Issue Date

Maturity

Coupon

Principal

Outstanding

Currency

December 2014

February 2022

2.925%

60M

60M

EUR

June 2014

June 2022

3.000%

150M

150M

CHF

September 2015

September 2023

3.625%

500M

294M

EUR

January 2017

January 2024

2.500%

600M

357M

EUR

February 2019

February 2026

3.000%

600M

600M

EUR

Perpetual Bonds

Issue Date

1st Call Date

Coupon

Principal

Outstanding

Currency

January 2019

April 2024

4.375%

500M

500M

EUR

October 2019

April 2025

2.625%

500M

500M

EUR

Convertible Bond

Issue Date

Maturity

Coupon

Principal

Outstanding

Currency

November 2020

December 2027

0.700%

500M

500M

EUR

SLB Bond

Issue Date

Maturity

Coupon

Principal

Outstanding

Currency

November 2021

November 2028

2.375%

700M

700M

EUR

Accor experienced a significant return of business during 2021 following the relaxation of health-related restrictions. This change of business activity is reflected as an increase in emissions between 2020 and 2021. As business activity returns to 2019 levels, further emission increases are anticipated in 2022. Accor is investing heavily in new capabilities in the form of tools and resources to enable hotels to reduce emissions. The benefits of these capabilities will progressively reduce emission over the coming years and enable the Group to achieve the published KPIs and targets.

Both scopes 1 & 2 and scope 3 emissions during 2021 are below the 2025 and 2030 emission reduction trajectory:

2019

Base Year

2020

2021

Scope 1 & 2 KPI - Trajectory tCO2e ('000)

3,471

3,325

3,180

Status KPI

-

On Track

On Track

2019

Base Year

2020

2021

Scope 3 KPI - Trajectory tCO2e ('000)

3,255

3,170

3,087

Scope 3 KPI - Actual tCO2e ('000)

3,255

1,940

2,306

Status KPI

-

On Track

On Track

Financial Operations

Prospectus