Compagnie de Financement Foncier

Compagnie de Financement Foncier (AAA/Aaa/AAA) is a credit institution that was licensed by the French Credit Institutions and Investment Firms Committee (CECEI - Comité des Établissements de Crédit et des Entreprises d’Investissement) on July 23, 1999, as a finance company and a société de crédit foncier (a specific type of company authorized to issue French legal covered bonds).

A fully-owned subsidiary of Crédit Foncier (A/Aa3/A+) and an affiliate of BPCE (A+/Aa3/A+), the company’s sole business is to finance the residential mortgage loans and public-sector lending activities of its parent company and of the Groupe BPCE.

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. (see following figure)

Firmly underpinned by its parent Crédit Foncier, which has been issuing French obligations foncières since 1852, Compagnie de Financement Foncier continued to be a major force in its market in 2010.