Vauban Mobilisations Garanties (VMG) is a wholly-owned subsidiary of Crédit Foncier. VMG was created in 1997 and was bought by Crédit Foncier. VMG is an innovative refinancing vehicle whose main activity consists of buying mortgages originated by Crédit Foncier. It contributes to ensuring the group’s competitiveness on the market for financing residential real estate.
Its assets are primarily comprised of senior securitisation mutual fund units that have been, or are liable to become, rated AAA, whose underlyings consist of real estate loans to individuals. These assets have been, or are liable to be, rated AAA/AAA by Standard & Poor’s and Fitch Ratings since the creation of VMG. Since November 2006, Moody’s has rated the new assets acquired by VMG Aaa.
VMG’s issues are on par with covered bonds. Its senior issues are rated AAA/Aaa/AAA. Investors benefit from a structure protected against insolvency risk. Senior FCT funds, reserves and provisions are pledged as collateral, for investors, in a Financial Investments Account [link to Glossary].
VMG is thus one of Crédit Foncier’s two refinancing vehicles alongside Compagnie de Financement Foncier.
Visit the Vauban Mobilisations Garanties website