Historical review

Compagnie de Financement Foncier, an institution founded in 1999 and capitalising on more than 150 years of experience of its parent company

Foundation of Crédit Foncier de France in 1852

The main business of Crédit Foncier de France, founded in 1852, is to grant mortgage-backed real estate loans and local authority loans and to issue bonds to finance these loans.

Public interest assignments

From the time it was founded, Crédit Foncier de France became the leading lender to local authorities and maintained that position until World War II. Since the 1950s, Crédit Foncier de France has been entrusted with several public interest assignments. The most important of these was to invest, finance and manage the state-subsidised loans (PAP) for which it was the main distributor.

The law on sociétés de crédit foncier dated June 25, 1999

Until 1999, only Crédit Foncier de France and Crédit Foncier et Communal d'Alsace et de Lorraine were considered as "Sociétés de Crédit Foncier". These entities could issue covered bonds ("obligations foncières") pursuant to the decree of 1852. While the legal environment on bankruptcy laws evolved rapidly, the legislation did not follow up with the requisite priority right of payment for "obligations foncières". The rank of holders of these bonds fell significantly and their risk increased accordingly. After the priority right of payment was granted and a creditor rating was given under the Act of June 25, 1999 (for more information on the law, please click here ), the Crédit Foncier Group's overall competitive position was strengthened in European markets for real estate and local authorities financing. The June 25, 1999 Act also required the old "Sociétés de Crédit Foncier", Crédit Foncier de France and Crédit Foncier et Communal d'Alsace et de Lorraine, to transfer all eligible assets and liabilities to a new Société de Crédit Foncier.

The inception of Compagnie de Financement Foncier

The inception of Compagnie de Financement Foncier on July 23, 1999 and the transfer by Crédit Foncier de France of old secured loans as well as eligible assets and liabilities to Compagnie de Financement Foncier on October 21, 1999 brought the Crédit Foncier Group into compliance with the new law on "Sociétés de Crédit Foncier". Crédit Foncier de France continues to distribute, manage and recover loans recognised in the balance sheet of Compagnie de Financement Foncier and continues to manage all the liabilities and derivatives. Management agreements regulating the relationship between the parent company and its wholly-owned subsidiary were implemented.

Key dates


  • Creation by decree of the first French mortgage bank, Crédit Foncier de France, under the société de crédit foncier statutory.
  • First issue of "obligations foncières" in France.


  • Leading institution for financing local authorities.


  • Post-war reconstruction: leading institution in the distribution of subsidised loans for social housing.


  • The Caisse d'Epargne Group acquires 90.6% of Crédit Foncier de France;
  • New law on "Obligations foncières" (French Savings and Financial Security Act of June 25, 1999 giving the sociétés de crédit foncier a new status; for more information please click here)
  • Creation of Compagnie de Financement Foncier, a "Société de Crédit Foncier", wholly-owned subsidiary of the Crédit Foncier Group.


  • Compagnie de Financement Foncier becomes a major player in the European covered bonds market;
  • It is the first private issuer and one of the 10 most active AAA issuers on the covered bond market.


  • The establishment of an AMTN programme to issue "obligations foncières" in AUD-Australian Dollar, Domestic Format.
  • Leading French issuer of "obligations foncières" with more than 50% market share.


  • Compagnie de Financement Foncier is the first AAA/Aaa/AAA non-sovereign issuer issuing with a 50-year maturity


  • Issue of the first "MAPLE", "obligation foncière" in CAD-Canadian dollar under domestic format.
  • Top year in term of issue of obligations foncières with €23.5 billion.


  • Compagnie de Financement Foncier receives 2008 Award IFRin the « covered bond of the Year » category for its 10-year €2.5bn issue.


  • Authorization to issue with a new format 144A/RegS in the USA. This format allows non-US issuers to issue bonds intended to US investors


  • Setting up of the USMTS program to issue obligations foncières in american dollars (USD).
  • April 15: Compagnie de Financement Foncier launched an inaugural issue under the 144A/RegS formats of USD 2bn 3-year maturity, 144A being the format dedicated to foreign investors on the US market.
  • July 13: second benchmark 2-year-maturity issue of $1.8bn (€1.4bn) under 144A/RegS formats.
  • September 23: Compagnie de Financement Foncier received the Award for "best issuer of the year" during the Covered Bonds Awards Ceremony organised by Euroweek Magazine.


  • Compagnie de Financement Foncier plays a major role in the implementation and the development of the ECBC label;
  • The European Covered Bond Council (ECBC), which represents 95% of the covered bonds market, is committed to "promote the asset class covered bonds as a privileged instrument for lenders to grant mortgages";
  • Thus, it created the Covered Bond label that allows to standardize and label all covered bonds formats.


  • Compagnie de Financement Foncier finalised the disposal of external securitisations recorded in its balance sheet and its obligations foncières are eligible for ECB refinancing operations.
  • Compagnie de Financement Foncier is also compliant from 01 January 2014 with Article 129 of the European CRR and the ECBC Covered Bond Label Convention.


  • Groupe BPCE succeeds stress test conducted by the ECB.
  • Compagnie de Financement Foncier’s obligations foncières levels on the secondary market are trading close to the French sovereign bonds (OAT).


  • Compagnie de Financement Foncier receives 2 Awards :
    • Award of "The Covered Bond report" -  "Best issuer in euro"
    • Award of "The Cover - Global Capital" -  "Best issuing strategy"


  • Compagnie de Financement Foncier receives the MTN-I- Award, in the category EMTN/PP Deals of the Year, for a 15-year €730m private placement.


  • A 15-year euro benchmark issued with the lowest spread since the creation of Compagnie de Financement Foncier.
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