Française des Jeux (FDJ) has secured access to a €380 million syndicated loan, in which funds will be utilised to repay the French state’s agreed 25-year national lottery operating concession.
Prior to becoming a publicly listed enterprise by floating on the Paris Euronext Exchange last November, the French government had granted FDJ a 25-year extension on its existing national lottery and sports betting (point-of-sale) licence.
FDJ’s contract extension was approved under the terms of the ‘PACTE ACT’ enterprise mandate, becoming the first French state asset to be privatised by PM Emmanuel Macron‘s En Marche government.
Deal terms stipulated that FDJ would have to pay €380 million to the French government by 30 June 2020. Updating investors, FDJ governance underlines that it secured options on a syndicated loan taking advantage of the current market’s favourable interest rate environment.
Transaction terms see the €380 million loan establish repayment options on a ‘straight-line basis’ over a 20-year period. FDJ’s loan transaction is secured by the French banks of BRED, Caisse d’Epargne, Credit Agricole and Crédit Lyonnais.