FINANCIAL AND ACCOUNTING INFORMATION As a result of these arrangements, the Group 22.1.6 Commercial paper program transfers the credit risk, interest risk and late Rexel runs a €500 mi l l ion commercial paper payment risk to the factor, and remains liable for program, with fixed maturities ranging from one col lecting the receivable on behalf of the factor. to three months depending on the notes, issued to As of December 31, 2017, Rexel derecognized the diversify its investor base and minimize the cost of trade receivables sold to the factor for €73.2 million financing. (€23.0 mi l l ion as of December 31, 2016). Cash collected on behalf of the factor in relation with the As of December 31, 2017, the company had issued transferred receivables was recognized in financial €41.7 million of commercial paper (€131.7 million as liabilities for €25.6 million as of December 31, 2017 of December 31, 2016). (€16.5 million as of December 31, 2016). 22.2 Change in net financial debt As of December 31, 2017 and December 31, 2016, the change in net financial debt was as follows: FOR THE YEAR ENDED DECEMBER 31, (in millions of euros) 2017 2016 As of January 1, 2,172.6 2,198.7 Issuance of senior notes net of transaction costs 790.6 642.5 Repayment of senior notes (819.3) (835.3) Transaction costs and refinancing costs (0.1) (1.6) Net change in credit facilities, commercial papers and other financial borrowings (80.4) (48.2) Net change in credit facilities (109.3) (242.5) 5 Net change in securitization (29.3) 15.2 Net change in finance lease liabilities (3.0) (3.6) Net change in financial liabilities (141.6) (230.9) Change in cash and cash equivalents 105.7 165.1 Effect of exchange rate changes on net financial debt (111.0) 16.1 Effect of acquisition 0.0 4.4 Effect of divestment (12.1) (1.5) Amortization of transaction costs 6.0 6.2 Non recurring refinancing costs 23.3 16.3 Other changes (1.7) (1.9) As of December 31, 2,041.2 2,172.6 23. Market risks and financial instruments 23.1 Interest rate risk The Group uses derivative financial instruments In order to hedge its exposure to changing interest to hedge its exposure to foreign exchange and rates, the Group has adopted an interest rate interest rate risks. Derivatives that do not qualify hedging strategy aimed at maintaining a hedging for hedge accounting are accounted for as trading ratio on a one-year rol ling basis of close to 80%, instruments. 50% on a two-year rolling basis, and 25% on a three- year rolling basis of its net financial debt at fixed or capped rates with the remainder at variable interest rates. REXEL 2017 – REGISTRATION DOCUMENT 259