2010 Annual Report
Outstanding debt: the total amount of capital owed at a given time.
Outstanding debt: €286.3 M at 31 December 2010, i.e. €984 per inhabitant.
Changes in outstanding debt
In 2010, the City of Nantes pushed ahead with the debt reduction process initiated in 1995. Along with the active management of the debt and the drop in interest rates, the reduction of the outstanding debt has enabled the City to lower its financial costs.
Excluding land reserves, the City of Nantes' outstanding debt amounted to €279.8 M at 31 December 2010. It we add the land reserves (€6.4 M) and guarantees, the City's total outstanding debt amounted to €286.3 M (i.e. €984 per inhabitant) in 2010.
Debt structure at 31 December 2010
Breakdown of loan portfolio by lender at 31 December 2010
In 2010, to round off the financing of its capital expenditure, the City took out two loans with BNP PARIBAS, the bank which offered the most favourable terms:
- A loan of €8.0 M over a period of 15 years at a fixed rate of 3.51%,
- A loan of €12.0 M over the same period, at the 3-month Euribor + 0.45%.
Dexia is the City's main lender, with an outstanding loan accounting for over half of the total (56%, i.e. €157.2 M). Next come groupe Caisse Épargne (15%) and Société Générale (13%). BNP PARIBAS, with whom the City contracted two loans in 2010 totalling €20.0 M, becomes its fourth lender (8% of the total debt).
Risk classification of loans at 31 December 2010
Since the economic crisis of 2008, banking practices have been tightened up. Banks have undertaken not to offer excessively risky products to public authorities. A classification of loans according to their risk level has been established. Thus, nearly 80% of the loans in the City's portfolio are rated among the market's less risky.