2007 Interactive Registration Document - Renault

02 RISK
MANAGEMENT REPORT
MANAGEMENT
Group issuance programs and ratings at December 31, 2007
ISSUER PROGRAM (1) MARKET CEILING (million) S&P MOODY’S FITCH R&I JCR
Renault SA CP Euro EUR 1,500 A2 P2
Renault SA EMTN Euro EUR 7,000 BBB+ Baa1 BBB+
Renault SA Shelf documentation Yen JPY 150,000 A A
RCI Banque Euro CP Euro EUR 2,000 A2 P2 F2 a1
RCI Banque EMTN Euro EUR 12,000 A- A3 A- A
RCI Banque CD French EUR 4,000 A2 P2 F2
RCI Banque BMTN French EUR 2,000 A- A3 A-
Diac CD French EUR 1,500 A2 P2 F2
Diac
RCI Banque + Overlease + Renault
BMTN French EUR 1,500 A- A3 A-
AutoFin (RCI guarantor ) CP Belgian EUR 500 A2 P2 F2
(1) EMTN: Euro Medium Term Note – CP: Commercial Paper – CD: Certificate of Deposit – BMTN: Negotiable Medium Term Note.
The RCI Banque group’s programs concern two issuers (RCI Banque and Diac)
for a combined total of more than €23.5 billion.
Automobile
Renault SA raises most of the refi nancing for Automobile in the capital markets
mainly through long-term financial instruments (bond issuance, private
placement), thereby providing Automobile with a minimum level of cash reserves
at all times.
To diversify its sources of long-term fi nancing, Renault SA increased its presence
in the domestic Japanese bond market by issuing fi ve Samurai bonds since
2001. On December 31, 2007 the maturity schedule of these issues ranged
from one to fi ve years. Renault SA has specifi c simplifi ed documentation for
domestic Japanese issues (Shelf Registration Statement) with a maximum
amount available of ¥150 billion until September 2009. Renault SA’s EMTN
program was updated in June 2007, retaining a maximum amount available
of €7 billion.
MATURITY SCHEDULE FOR RENAULT SA BONDS AND EQUIVALENT DEBT
AT DECEMBER 31, 2007 (1)
1,400
1,200
1,000
800
600
400
200
0
(1) Nominal amounts marked to market at December 31, 2007.
< TABLE OF CONTENTS >
Furthermore, Renault SA benefi ts from confi rmed renewable credit lines with
banking institutions for a total amount of €4.5 billion with maturities extending to
2012. These credits are not intended to be a permanent and signifi cant source
of cash. They provide a liquidity reserve for Automobile and are also partly
intended as back-up lines for the issuance of short-term commercial paper.
The contractual documentation on these confi rmed lines of credit contains no
clauses that could affect the raising or continued supply of credit following a
change in the rating of Renault.
Sales Financing
RCI Banque maintains secure sources of funding at all times in order to
maintain its business. To that end, the company has adopted stringent internal
guidelines.
Available sureties of €7,778 million (€5,361 million of confi rmed credit lines,
stable compared to December 31, 2006; €2,417 million of cash and cashable
receiveables at the Central Bank) cover 1.7 times the total outstanding in
commercial paper and certifi cates of deposit. The RCI Banque group thus has
liquidity reserves of €3,077 million.
RCI Banque has also operated a securitization program since 2002 that enables
the entire RCI Banque group to diversify its fi nancial resources and broaden its
investor base. In this program, the assets of French or foreign subsidiaries are
transferred to local special-purpose vehicles (SPV) operating as Master Trusts.
The entire pool of loans in a business segment meeting eligibility criteria is
transferred on a continuous basis to the SPV. The portfolio is then partly fi nanced
by medium-term securities subscribed by investors in the European market. The
difference between the transferred portfolio and the amount of the mediumterm
debt securities is fi nanced by short-term private placement. In view of
the characteristics of these transactions, and in accordance with the Group’s
accounting rules, these securitized receivables are still recorded as assets in
the consolidated balance sheet.
74 Registration Document Renault 2007
Find out more at www.renault.com
01
02
03
04
05
06
07
08