PROSPECTUS SUPPLEMENT DATED 16 ... - Finance - EDF

vary with the prevailing exchange rates in the marketplace. If the value of Renminbi depreciatesagainst the Euro, the U.S. dollar or other foreign currencies, the value of investment in Euro, U.S.dollar or other applicable foreign currency terms will decline.Investment in RMB Notes is also subject to interest rate risksThe PRC government has gradually liberalised the regulation of interest rates in recent years.Further liberalisation may increase interest rate volatility. RMB Notes will generally carry a fixedinterest rate. Consequently, the trading price of such RMB Notes will vary with fluctuations inRenminbi interest rates. If a Noteholder tries to sell such RMB Notes before their maturity, hemay receive an offer that is less than his original investment.RMB currency riskExcept in limited circumstances, all payments of Renminbi under the RMB Notes will be madesolely by transfer to a Renminbi bank account maintained in Hong Kong in accordance with theprevailing rules and regulations for such transfer and in accordance with the terms and conditionsof the RMB Notes. The Issuer cannot be required to make payment by any other means(including by transfer to a bank account in the PRC or anywhere else outside Hong Kong). Forpersons holding a beneficial interest in the RMB Notes through Euroclear or Clearstream,payments will also be made subject to the procedures of Euroclear or Clearstream, as applicable.Developments in other markets may adversely affect the market price of any RMB NotesThe market price of RMB Notes may be adversely affected by declines in the internationalfinancial markets and world economic conditions. The market for RMB denominated securities is,to varying degrees, influenced by economic and market conditions in other markets, especiallythose in Asia. Although economic conditions are different in each country, investors’ reactions todevelopments in one country can affect the securities markets and the securities of issuers inother countries, including the PRC. Since the sub-prime mortgage crisis in 2008, the internationalfinancial markets have experienced significant volatility. Should similar developments occur in theinternational financial markets in the future, the market price of RMB Notes could be adverselyaffected.The Issuer may make payments of interest and principal in U.S. dollars in certain circumstancesAlthough the primary obligation of the Issuer is to make all payments of interest and principal withrespect to the RMB Notes in Renminbi, in the event access to Renminbi deliverable in Hong Kongbecomes restricted to the extent that, by reason of Inconvertibility, Non-transferability or Illiquidity(each as defined the Terms and Conditions of the Notes) the Issuer would not be able, or it wouldbe impracticable for it to pay interest or principal under such RMB Notes in Renminbi in HongKong, the terms of such RMB Notes allow the Issuer to make such payment in U.S. dollars at theprevailing spot rate of exchange, all as provided for in more detail in the Terms and Conditions ofthe Notes. As a result, the value of such payments in Renminbi may vary with the prevailingexchange rates in the marketplace. If the value of the Renminbi depreciates against the U.S.dollar the value of a Noteholder’s investment in U.S. dollar will decline.- 5 -