Compagnie de Financement Foncier

Transcription

1 1 Compagnie de Financement Foncier Sandrine GUERIN, Deputy CEO Executive Vice-President of Crédit Foncier Singapore, Wednesday, November 30, 2011 Grand Hyatt Singapore Hotel

2 2 Historical issuance

3 3 Compagnie de Financement Foncier Overview

4 Milestones 4 Established in 1852, Crédit Foncier de France quickly 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 s 1950s Crédit Foncier de France is created as France s first Société de Crédit Foncier and issues the first Obligations Foncières After WWII, Crédit Foncier de France becomes the leader in the social housing sector with State-subsidised loans 2006: 50-year issue 2009: 15.8bn in issuance 2010: Further expansion of Compagnie de Financement Foncier s investor base through the 144A market Leading lender to local authorities Crédit Foncier (A/Aa3/A+) becomes a subsidiary of Groupe Caisse d Epargne New legal framework for Obligations Foncières Compagnie de Financement Foncier (AAA/Aaa/AAA) is founded

5 Affiliated with a strong retail banking group 5 Groupe BPCE 20 Banques Populaires 17 Caisses d Epargne 50% 50% BPCE (A+/Aa3/A+) Central institution 100% Crédit Foncier de France (A/Aa3/A+) 100% Issuer of French Obligations Foncières Compagnie de Financement Foncier (AAA/Aaa/AAA) Since August 5, 2010

6 Profile: Covered Bonds 6 Legal developments in Europe have provided a clear definition for covered bonds (UCITS) and ensure: Legal safeguards Obligation to have a domestic legal framework which defines the covered bonds Privileged claim on eligible assets Economic safeguards High quality assets: i.e. public sector, first-rank mortgages Permanent overcollateralization Institutional safeguards Issuer is a European credit institution Specific control is ensured by a Specific Controller, who is a Statutory Auditor separate and independent from the Statutory Auditors of Compagnie de Financement Foncier

7 Transparency & safety: the French Covered Bonds legal framework 7 Stringent legal and regulatory framework designed to ensure maximum protection of investors. Transparency of the activity A dedicated balance sheet and an exclusive purpose Clearly defined assets: mortgage loans, loans to local authorities and exposures to public entities Protection of bondholders No extension of bankruptcy of the parent company to the société de crédit foncier itself Investors benefit from the privilège of Obligations Foncières Permanent overcollateralization No ALM mismatch - all assets and liabilities are swapped into euros at floating interest rates Affiliation with BPCE: the central entity is obligated to ensure the solvency of its subsidiaries

8 Transparency & safety: rigorous monitoring 8 Regulatory controls Compagnie de Financement Foncier operates under the control of the French Prudential Control Authority Two independent statutory auditors regularly audit all company accounts Control by internal auditors from parent company Inspection of subsidised loans by a separate controller appointed by the French State The Specific Controller, dedicated teams and systems specialised in Overcollateralization certificates and issuance programmes Computing for validation of controls and loan characteristics Banking ALM for control of interest and exchange rate risks Compliance and legal aspects applicable to Sociétés de Crédit Foncier Updated valuation of properties securing mortgage loans

9 A transparent structure with a unique business model 9 Mortgage loans Public loans Selection Eligible assets Obligations Foncières + Privileged debt Investors Bonds issued by Local Authorities Replacement securities Non-privileged debt & Capital Mortgage securitisations Derivatives (swaps)

10 Key figures as of June 30, A robust and transparent balance sheet of 103.7bn. ASSETS ( bn) LIABILITIES ( bn) AAA/Aaa/AAA Secured loans 44.4 Privileged resources M Net income Public sector exposures 42.5 of which Obligations Foncières 89.9 Replacement assets Other assets TOTAL ASSETS Non-privileged resources TOTAL LIABILITIES % Overcollateralization Ratio 62.6% Average LTV

11 11 Compagnie de Financement Foncier A stringent risk management for a AAA/Aaa/AAA rating

12 Transparency & safety: risk management 12 Compagnie de Financement Foncier is committed to minimising its risks and to maintaining an overcollateralization ratio that well exceeds legal requirements. Credit and counterparty risks Interest rate risk Loans: minimum overcollateralization ratio Derivative transactions with minimum counterparty ratings Balance sheet managed on a floating interest rate basis Limitation of rate gap (examined quaterly), duration gap between assets and liabilities (< two years) Stress-tests are used to determine the level of non-privileged debt needed

13 Transparency & safety: risk management 13 Liquidity risk Currency risk Maintenance of one year s equivalent of debt liabilities in high quality liquid assets Maintenance of sufficient liquidity to cover the highest daily net cash outflow No open positions Strict management rules ensure: Minimisation of risks Transparency of financial information AAA/Aaa/AAA rating (outlook stable) by the three major rating agencies.

14 14 Compagnie de Financement Foncier High quality assets

15 A portfolio of high quality assets 15 The quality of the assets results from the restrictions imposed by the legal framework applicable to Sociétés de Crédit Foncier, as well as Compagnie de Financement Foncier s extensive expertise in risk selection. Assets secured by a public guarantee (direct or indirect) : 50.7% of all assets at June 30, Public sector exposures 52.6bn Mortgage loans guaranteed by the French State or a European public institution 10.1bn 9.7% French public sector loans 18.5bn 17.8% International public sector exposures 24bn 23.2% Breakdown of assets as of June 30, % 103.7bn Mortgage loans and related items 22.9bn 22.1% European senior residential mortgagebacked securities 11.4bn 11.0% Replacement securities 14.2bn 13.6% Other assets 2.6bn 2.6% Mortgage loans 34.3bn 33.1% Replacement securities and other assets 16.8bn 16.2%

16 A portfolio of high quality assets 16 France 65.7% bn Italy 6.7% USA 6.1% Spain 6.0% Netherlands 5.1% Others 4.0% Germany 1.8% Japan 1.8% Switzerland 1.6% Portugal 1.2%

17 17 Compagnie de Financement Foncier Funding program

18 Three pillars of funding policy 18 Benchmarks and Taps In EUR or USD, RegS and/or 144A formats Taps of existing benchmark issues Reverse Inquiry Ability to adapt to fluctuating investor demand: offering various currencies, structures and new formats Currency Diversification Development of liquid yield curves in non-euro currencies such as AUD, CHF, GBP, JPY, CAD, USD

19 2011 issuance: 8.4bn* (at November 3, 2011) 19 At September 1, 2011, issuances for 2011 reached 7.5bn with an average maturity of 7.2 years. They included benchmarks: In US dollars under the USMTS program: the 3-year 144A/RegS issue in a principal amount of US $1.5bn in March In Euros under the EMTN program: the 1bn 5-year issue in January the 1bn 10-year issue in April

20 2011 issuance: 8.4bn* (at November 3, 2011) Germany 28% France 27% USA 12% by region Europe others 1% Italy 1% Others 1% Eastern Europe 1% Benelux 2% United Kingdom 3% Scandinavia 5% Asia 7% Switzerland 12% by currency CAD 0.2% 20 JPY 0.6% EUR 68.1% NOK 1.5% CHF 10.4% USD 19.2% * These are un-audited management data.

21 Disclaimer 21 This presentation is for information purposes only and shall not be considered as an invitation to invest. It should in no event be considered as a solicitation of business or a public issue and does not constitute an offer to buy, sell, subscribe, or provide financial services. It should also not be considered as a recommendation or a solicitation to buy or sell obligations foncières. In particular, this document and the information contained herein do not constitute an offer of securities for sale in the United States. No securities of Compagnie de Financement Foncier have been or will be registered under the US Securities Act of 1933, as amended (the "Securities Act"). Pursuant to an Order of the Securities and Exchange Commission, Compagnie de Financement Foncier has been exempted from all provisions of the Investment Company Act of 1940, as amended, subject to compliance with certain conditions. Compagnie de Financement Foncier does not intend to register an offering in the United States of America or conduct any public offering of securities in the United States of America. This document and its contents may not be viewed by persons within the United States of America (within the meaning of Regulation S under the Securities Act) other than qualified institutional buyers ( QIBs ) as defined in Rule 144A under the Securities Act ( Rule 144A ). Obligations foncières may not be offered or sold in the United States of America except to QIBs in reliance on Rule 144A or another exemption from, or transaction not subject to, the registration requirements of the Securities Act. Any investment decision to purchase any obligations foncières of Compagnie de Financement Foncier should be made solely on the basis of the final terms and conditions of such obligations foncières and the information contained in an offering memorandum produced in connection with the proposed offering of such obligations foncières and no reliance is to be placed on any representations other than those contained in such offering memorandum, which will be published by Compagnie de Financement Foncier in connection with a proposed offering. Any offering memorandum produced in connection with any offering of obligations foncières may contain information different from the information contained in this presentation. Prospective investors are required to make their own independent investigations and appraisals of the business and financial condition of Compagnie de Financement Foncier and the nature of the obligations foncières and consult with their own financial, legal or other advisors before taking any investment decision with respect to obligations foncières of Compagnie de Financement Foncier. This information is provided "as is", and is for information purposes only. It has nonetheless been supplied by sources that are deemed to be reliable. However, where information was furnished by third party sources, Compagnie de Financement Foncier has not verified the accuracy and completeness of such information. It is the intention of Compagnie de Financement Foncier to ensure that the information is accurate and up-to-date, and it reserves the right to make corrections to the content at any time, without prior notice. It is not, however, in a position to guarantee that such information is complete. It moreover does not accept any responsibility in the event of any mistake, inaccuracy or omission relating to such information. Certain statements in this presentation are forward-looking statements under the U.S. federal securities laws. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions which could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Compagnie de Financement Foncier does not undertake any obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak only as of the date of this presentation. You hereby acknowledge that the use and interpretation of this information requires specific and in-depth knowledge of financial markets. Compagnie de Financement Foncier and its contributors do not accept any responsibility in relation to the use that could be made of the financial information contained in this document and the possible consequences of such use, in particular regarding decisions made or actions taken on the basis thereof. In this respect, you shall remain solely responsible for the information and results obtained on the basis of this information. Additional information regarding this presentation will be furnished upon request. Compagnie de Financement Foncier 4 quai de Bercy CHARENTON Cedex FRANCE