According to the announcements of the French Prime Minister on May 25th, 2018,
the French railway reform will give rise to a EUR 35 billion debt relief of
SNCF Réseau (The French Railway Infrastructure Owner and Manager) by the
French State, among which EUR 25 billion in 2020 and EUR 10 billion in 2022, in
order to significantly improve the financial struct ure of the company,
alongside the enhancement of the operational performance of SNCF.
In a press release published on November 26th, 2018, the French Ministry of
Economy and Finance, via Agence France Trésor (AFT), announced that this debt
relief " will involve arranging matching loans between SNCF Réseau and the
Government Debt Fund (Caisse de la Dette Publique - CDP). After that, and
following authorisation from Parliament in the Budget Act, the government will
assume SNCF Réseau's debt to CDP, removing the corres ponding amount of debt
from SNCF Réseau balance sheet ".
Agence France Trésor adds that " this arrangement will spread the impact of
assuming this debt on the government's borrowing requirement over a long
period, while restoring the financial sustainability of SNCF Réseau. It will
maintain completely equal treatment for bondholders. "
Nicolas MARCHESSAUX, Head of Capital Markets & Derivatives
01 45 19 28 54
About SNCF Réseau
Within SNCF Group, one of the world's leading mobility and logistics groups,
SNCF Réseau manages, maintains, develops and sells a ccess to the French rail
network. It guarantees the safety and performance of more than 30,000 km of
track, including 2,600 ded ic ated to high-speed rail. It guarantees the a
ccess to the network and services infrastructures in full transparency and non
segregating conditions to its 38 clients: 26 railway corporates use the network
and 12 other corporates, c alled authorized c andidat es (combined
transportation operators, ports, etc.), order furrows they pla ce to railway
corporate of their choice. Second French public investor, c ounting 55,000
employee s for EUR 6.5 billion revenues in 2017.