Compagnie de Financement Foncier, an institution founded in 1999 and capitalising on more than 168 years of experience of its parent companyFoundation of Crédit Foncier de France in 1852
Foundation of Crédit Foncier de France in 1852
The main business of Crédit Foncier de France, founded in 1852, was to grant property loans backed by first ranking mortgages, it became a key player to finance French local authorities.Public interest assignments
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. It retained a dominant position there until World War II. From the 1950s onward, Crédit Foncier de France has been was entrusted with several public interest assignments and thus played a key role in the real estate sector. 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
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 to refiance the mortgage lending activities and public-sector activities of group crédit 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.Groupe BPCE integrates the activities and teams of Crédit Foncier
Groupe BPCE integrates the activities and teams of Crédit Foncier
Starting April 2019, Compagnie de Financement Foncier refinances loans to the public and similar sectors of Groupe BPCE entities. It remains a wholly-owned subsidiary of Crédit Foncier and affiliated to BPCE.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.
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;
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.
Leading French issuer of “obligations foncières” with more than 50% market share.
Top year in term of issue of obligations foncières with €23.5 billion.
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.
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 is also compliant from 01 January 2014 with Article 129 of the European CRR and the ECBC Covered Bond Label Convention.
Compagnie de Financement Foncier’s obligations foncières levels on the secondary market are trading close to the French sovereign bonds (OAT).
Award of “The Covered Bond report” – “Best issuer in euro”
Award of “The Cover – Global Capital” – “Best issuing strategy”
placements. Double tranche issuance of €1.5bn: Two tranches of €750m with maturities of 6 and 20 year