The privilege of obligations foncières

Liabilities benefiting from a senior priority of payment

A specific privilege is granted to “obligations foncières” and to other privileged resources (article L.513-11): privileged debts are paid at their normal due date, by priority over all other debts both for the interest and the principal, until their total repayment including in case of bankruptcy or court-ordered liquidation of the company.

Type of the specific privilege

1. All cash flows from assets are allocated by priority to privileged debts (article L 513-11)
2. In the event of bankruptcy or court-ordered liquidation of the SCF: privileged debts are paid at their normal due date, with priority over all other debts both for the interest and the principal, until their total repayment (Article L.513-11)
3. The liquidation of the SCF does not make the privileged debts due (Article L.513-11)

Non extension of the risk of bankruptcy

1. Holders of obligations foncières are protected by the privileged claim under Article L. 513-11;
2. The court-ordered liquidation of a shareholder of the SCF cannot be extended to the SCF (Article L.513-20);
3. Asset transfers prior to a declaration of insolvency remain valid and cannot be disputed.

Issuance programs

Obligations Foncières may be issued under the following formats:

the EMTN program

set up in 1999 under French law, allows:

• all amounts;
• all currencies: EUR, USD, JPY, CHF, GBP, HKD, etc. ;
• a wide range of structures: fixed-rate, variable-rate, interest-free, index-linked , callable note, etc.

the AMTN program

set up in 2005 under Australian law (the preferential claim of holders of obligations foncières is under French law) allows:

• all amounts;
• only issuances in AUD;
• a wide range of structures: fixed-rate, variable-rate, interest-free, index-linked , callable note, etc.

the RCB program

set up in 2008 under German law (the preferential claim of holders of obligations foncières is under French law) allows:

• all amounts;
• only issuances in EUR;
• a wide range of structures: fixed-rate, variable-rate, interest-free, index-linked , callable note, etc.

the USMTS (Format 144A) program

set up in 2010 under British law (the preferential claim of holders of obligations foncières is under French law) allows:

• all amounts;
• all currencies: EUR, USD, JPY, CHF, GBP, HKD, etc. ;
• a wide range of structures: fixed-rate, variable-rate, interest-free, index-linked , callable note, etc.

Compagnie de Financement Foncier issues

Compagnie de Financement Foncier issues as of December 31, 2023

By investor type

By region (excluding eurosystem)

List of issues

The exhaustive list of covered bonds issued by Compagnie de Financement Foncier is available on the European Covered bond Label website at the following address: https://www.coveredbondlabel.com/issuer/10-compagnie-de-finance-foncier.

List of institutions authorized to issue Covered Bonds (see footer) of standard or higher quality:

https://acpr.banque-france.fr/controler/publications-du-controle/textes-reglementaires-relatifs-aux-obligations-garanties

Detailed list of issues European High Quality Covered Bonds (to be selected in “Label Name”):

https://acpr.banque-france.fr/covered-bonds?title=compagnie&field_nom_du_label_value=1&field_code_isin_value=