Compagnie de financement foncier products, services and reviews

About Compagnie de financement foncier

Compagnie de Financement Foncier is a French specialized credit institution operating as a société de crédit foncier within Groupe BPCE, established to issue obligations foncières (French covered bonds) that refinance eligible public-sector and mortgage-related exposures originated within the group, including legacy assets from Crédit Foncier de France. It does not collect deposits or provide retail banking services; its activity is wholesale funding and asset refinancing under a dedicated legal framework in the French Monetary and Financial Code. The issuer maintains a segregated cover pool recorded in a cover register, with assets that must meet statutory criteria such as public-sector exposures or loans secured by first-ranking mortgages or qualified guarantees, and is subject to limits on loan-to-value and concentration. Bondholders and eligible hedging counterparties benefit from a legal privilege granting priority claim over the cover assets, and the company is required to keep sufficient overcollateralization and a liquidity buffer designed to cover net outflows over a prescribed horizon; interest rate and currency risks are typically managed with derivatives documented to meet covered bond law requirements. Supervision is carried out by the ACPR, and a specific controller oversees compliance with the cover pool rules and matching principles. Issuance is conducted in benchmark and private formats, primarily in euros and listed on regulated markets, with periodic investor reporting on pool composition, risk metrics, maturity profiles, and overcollateralization published for transparency. Following BPCE’s reorganization of Crédit Foncier announced in 2018, new loan production was integrated into other group entities while Compagnie de Financement Foncier continued as a refinancing vehicle and manager of existing eligible assets; issuance volumes and cover pool mix evolve with the group’s funding plan and asset sourcing. Investors should consult the latest offering documentation, investor reports, and rating actions for current figures and risk parameters.