New Mandate — CFF €500m (WNG) long 5-year inaugural Social covered bond
Dear all,
We have just announced a Global Investor Call and investors meetings in relation to a new €500m (WNG) long 5-year (January 2029) inaugural Social (Social Housing & Healthcare) covered bond transaction for Compagnie de Financement Foncier (“CFF”), for execution in the near future, subject to market conditions. Natixis is acting as Joint Bookrunner.
Transaction rationale:
- Groupe BPCE covered bonds funding target for 2023 has been set at €12bn (including BPCE SFH, CFF and Natixis Pfandbriefbank issues) out of a targeted total MTL funding plan of €29bn. The Groupe covered bond funding target has already been achieved prior to this new transaction.
- CFF had €4.7bn in benchmark covered bond redemptions falling in 2023, of which one EUR benchmark of €1.5bn that was repaid mid-September.
- This transaction is CFF’s third EUR covered bond in 2023, after it publicly issued a €1.75bn 8.5-year in March and a €1bn 6-year in May.
- This transaction is CFF inaugural Social covered bond, with Use of Proceeds dedicated to Social Housing and Healthcare. This will also be the first bond from Groupe BPCE to include Social Housing in the UoP categories. Of note, BPCE has already issued Social Bonds addressing Local Economic Development, Sport Economy and Healthcare.
- CFF refinances loans to French Territorial Public Sector as well as Social loans (social inclusion loans, Zero interest loans…) through the issuance of covered bonds.
- CFF has received the “European Covered Bond (Premium)” Label.
Roadshow details:
- Global Investor Call on Wednesday 04th October at 15.00 CET: Registration URL
- The CFF / BPCE team will be represented by: Paul Dudouit – Head of Funding & Investor Relations at CFF, Gregory Glycococalos – Investor Relations & ESG at CFF, France de Sury – Head of Investor Relations at Groupe BPCE, Anne-Laure Garnier – Head of Portfolio Management at Groupe BPCE
Groupe BPCE ESG Ratings:
- Moody’s ESG solutions: 62/100 – Top 3% of all banks worldwide
- ISS ESG: Prime C – prime status – Top decile of all banks worldwide
- Sustainalytics: 15.8 – Top 13% of all banks worldwide
- MSCI: AA Top 30 % of all banks worldwide
CFF Social covered bond – Social Housing & Healthcare:
- CFF Social covered bond is issued out of Groupe BPCE Sustainable Development Bond Programme. The Framework has been set up in April 2020 to issue Green and Social Bonds with the latter including Human Development and Local Economic Development Bonds
- This Bond’s proceeds will address two categories within Human Development: Social Housing and Healthcare in France
- Use of Proceeds: finance or refinance eligible loans for two categories of assets: Social Housing (loans dedicated to HLM and loans dedicated to promoting social home ownership) and Healthcare Assets (French Public Hospitals)
- Eligible loan portfolio is €819m split 59% on Social Housing and 41% on Public Hospitals
- Target population for Social Housing: Low-income population subject to conditions of resources defined regarding the reference tax revenues of each person living in the household, depending on geographic areas.
- Process for project evaluation& selection is described in dedicated methodology note for each category.
- Management of Proceeds: on a portfolio approach with a 3-year look back period.
- Reporting: once a year BPCE will report on:
- 1. Allocations by eligible project category; 2. Share of Proceeds allocated to financing or refinancing; 3. Yet to be allocated amount of cash or cash equivalents; 4. Number, geography and amount of loans granted to public hospitals and actors involved in the sport economy
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- Impact measurements: an evaluation of the bond benefits based on social datas
- An SPO has been provided by Moody’s ESG Solutions (previously Vigeo Eiris) on BPCE methodology notes.
- Alignment: The Framework is aligned with ICMA Social Bond Principles
Marketing pack:
- Link to Social Housing Methodology Note / Second Party Opinion / Dedicated Social IP: https://groupebpce.com/en/investors/sustainable-bonds/social-bonds/social-housing
- Link to Healthcare Methodology Note / Second Party Opinion / Dedicated Social IP: https://groupebpce.com/en/investors/sustainable-bonds/social-bonds/healthcare
- Regular CFF IP and investor reports: https://backoffice-foncier.prd.mycloud.intrabpce.fr/en/investor-presentation/
- Base Prospectus and any supplements: https://backoffice-foncier.prd.mycloud.intrabpce.fr/en/prospectus-emtn/
