Compagnie de Financement Foncier

The main business of Crédit Foncier de France, founded in 1852, is to grant mortgage-backed real estate loans and local authority loans and to issue bonds to finance these loans.

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. Since the 1950s, Crédit Foncier de France has been entrusted with several public interest assignments. The most important of these was to invest, finance and manage the state-subsidised loans (PAP) for which it was the main distributor.

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 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.

• 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.

• Compagnie de Financement Foncier receives 2008 Award IFRin the « covered bond of the Year » category for the 10-year €2.5bn issue.