Compagnie de Financement Foncier is a credit institution licensed as a financial company and société de crédit foncier. A wholly-owned subsidiary of Crédit Foncier, its purpose is to finance mortgage and public-sector lending for its parent company as well as the entire Groupe BPCE.
These activities are funded by the issuance of obligations foncières, special covered bonds under French law, on the capital markets in various formats and currencies. Obligations foncières have a preferred legal status giving their bond holders priority access to asset flows. The obligations foncières issued by Compagnie de Financement Foncier are covered bonds that are compliant with European directives pertaining to UCITS and the Capital Requirements Directive.
Strongly rooted within its parent company Crédit Foncier, Compagnie de Financement Foncier has been issuing obligations foncières since 1852 and remains a market leader to this day. It is one of the group’s two refinancing vehicles, alongside VMG.
In 2012, the European Covered Bond Council (ECBC) created a certification process for covered bonds. Its goal is to facilitate access for investors to standardised and relevant disclosure. Compagnie de Financement Foncier played a leading role in developing and implementing the process. In fact, it is a member of the ECBC’s Executive Committee.
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