Compagnie de Financement Foncier is a credit institution company approved as a specialised credit institution and a société de crédit foncier (a french legal covered bonds issuer).
As a wholly-owned subsidiary of Crédit Foncier [A-(positive)/A1(stable)/A(positive)/AA-(stable)] and as an affiliate of BPCE [A(positive)/A1(stable)/A(positive)] the company’s sole purpose is to finance the mortgage and public-sector lending activities of both its parent company and Groupe BPCE as a whole, through the issuance of obligations foncières rated [AAA(stable)Aaa(stable)AAA(stable)].
As a société de crédit foncier (SCF), these transactions are specialized and consist exclusively of granting and acquiring loans secured by a first-rank mortgage, or granting and acquiring exposures to public authorities or that are fully guaranteed by them.
These loans are financed by issuing secured debts named obligations foncièrers on the market. These debts benefit from a statutory privileged claim to asset cash flows.
Since 2012, Compagnie de Financement Foncier is a member of the “European Covered Bond Council” Covered Bond Label. This label was created in order to meet the expectations of covered bonds market players for improving standards and increasing transparency, especially by providing investors with a regular and harmonized information.
Firmly underpinned by its parent Crédit Foncier, which has been issuing French obligations foncières since 1852, Compagnie de Financement Foncier is a major force in its market since its creation.