La Française des Jeux Signs €380m Bond to Pay the Consideration for Exclusive Rights

April 7, 2020 | Lottery News

BOULOGNE, France  – La Française des Jeux (FDJ), the leading gambling operator in France, announces the signing of a syndicated loan of 380 million euros.

This credit will enable it to finance the payment to the State of the financial compensation for securing its exclusive rights to operate, over 25 years, lottery games at point of sale and online, and sports betting at point of sale.

As part of the Pacte law promulgated on May 23, 2019, the ordinance reforming the regulation of gambling and gambling of October 2, 2019 fixed the duration of exploitation of the exclusive rights granted to FDJ at 25 years, and provided payment of a financial contribution before June 30, 2020. Its amount was set at 380 million euros by the specifications approved by the decree of October 17, 2019.

As indicated at the time of its initial public offering, FDJ has studied various financing methods, including syndicated credit. The Group has chosen this solution to benefit from a favourable interest rate environment and to align the repayment schedule with the duration of the exclusive rights.

FDJ signed on 1 st April with five French banks, a syndicated loan of 380 million euros, amortized linearly over 20 years at variable rates. The financing was coordinated by Caisse d’Epargne Ile de France as co-arranger and agent, with BRED, Caisse d’Epargne Hauts de France, Caisse Régionale de Crédit Agricole Mutuel de Paris et d’Ile de France and Crédit Lyonnais as authorized co-arrangers.

This loan strengthens the already extremely solid financial situation of FDJ.

SOURCE: La Française des Jeux (FDJ).