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About Société générale SFH

Société Générale SFH is a French specialized credit institution wholly owned by Société Générale S.A. and dedicated to issuing obligations de financement de l’habitat (OFH), the French covered bonds used to refinance residential mortgage lending. The vehicle operates under the French Monetary and Financial Code (notably Articles L.515-34 to L.515-44) and the EU Covered Bond Directive framework, with prudential oversight by the Autorité de contrôle prudentiel et de résolution. Proceeds from OFH are typically on‑lent to Société Générale group entities and secured by a pledge or assignment of residential mortgage receivables originated in France, creating dual recourse for investors to the issuer and, with statutory priority, to the segregated cover assets. A specific controller independent of management monitors compliance with coverage, eligibility, and matching tests, while statutory auditors review financial reporting. The cover pool generally consists of first‑lien, amortizing home loans with a mix of fixed and variable rates; interest rate and currency exposures are hedged via derivatives, and the program maintains overcollateralization and a liquidity buffer in line with legal requirements, including the 180‑day liquidity coverage. Issuance is predominantly in euros through benchmark and private placements, listed on regulated markets, and designed to meet European regulatory criteria for covered bonds, including Eurosystem collateral eligibility and CRR Article 129 treatment, subject to each series’ documentation; many series use soft‑bullet structures with extension provisions, though terms vary. Credit quality reflects the robustness of the French covered bond legal regime and the characteristics of the mortgage collateral, while also remaining sensitive to the parent bank’s creditworthiness, macroeconomic conditions in the French housing market, and asset‑liability management risks such as prepayments and interest rate volatility. Covered bonds benefit from an exemption from bail‑in under the BRRD, but remain exposed to risks including regulatory change, housing market stress, derivative counterparty performance, and potential concentration in origination channels within the group. Société Générale SFH publishes investor reports detailing pool composition, coverage, and stress testing metrics; rating agencies generally assign high investment‑grade ratings to OFH based on legal protections and collateral performance, subject to periodic review.