Loans being amortised from Nantes Métropole as of 1 January 2020

Loans being amortised from Nantes Métropole as of 1 January 2020 * * * Borrowing for communities is heavily regulated. Thus, borrowing can only cover the financing of investment expenditure: rehabilitation works, new construction, acquisition of furniture, equipment, etc. The community’s own resources must cover the repayment of loans. The deliberative meeting shall be responsible for borrowing. In order to have an “active debt management”, i.e. to be able to take advantage of the opportunities to renegotiate a loan, launch a consultation, make early repayment, etc., without waiting for a deliberative assembly, this competence is delegated to the Vice-President in charge of Finance in Nantes Métropole. In terms of debt strategy, Nantes Métropole makes the choice of having recourse to limited borrowing, diversifying its borrowings in terms of lenders and rates, and not taking out any structured loans. _ Borrowing Risk Classification (referred to as “Gissler Classification”):_ The Charter of Good Conduct signed in 2009 aims to govern mutual relations between local and regional authorities and banking institutions. It sets out a number of reciprocal commitments, in particular to enable better control of risks. Within this framework, a risk matrix has been defined to allow for the classification of the products offered to local authorities. This classification has two dimensions: * risk associated with the underlying index(s), 1 being the minimum risk and 5 the maximum; * risk associated with the structure of the product, A being the minimum risk and E the maximum. | **Underlying Indexes** | **** | **Structures** —|---|---|— 1 | Eurozone Indexes | A | Fixed rate exchange against variable rate or vice versa. Structured exchange rate against variable rate or fixed rate (single meaning). Variable rate capped (Cap) or boxed (Tunnel) 2 | French inflation indices or euro area inflation or differences between these indices | B | Simple Barrier. No leverage effect 3 | Eurozone Index Difference | C | Exchange Option (Swaption) 4 | Non-euro area indexes. Deviation of indices one of which is a non-euro area index | D | Multiplier up to 3; multiplier up to 5 capped 5 | Index deviation outside the euro area | E | Multiplier up to 5 6* | Indexations not authorised under the Charter (exchange rates, etc.) | F* | Structures not authorised by the Charter (cumulative, multiplier > 5, etc.) _* Outside Charter_ * * *