1 compagnie de financement foncier obligations foncières sandrine guerin deputy ceo, crédit...

35
1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

Upload: octavia-cooper

Post on 16-Jan-2016

217 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

1

Compagnie de Financement Foncier

Obligations Foncières

Sandrine GUERIN

Deputy CEO, Crédit Foncier

Page 2: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

2

Historical issuesHistorical issues

Page 3: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

3

Compagnie de Financement Foncier: Compagnie de Financement Foncier: MilestonesMilestones>>> 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 1950’s, Crédit Foncier de France has been entrusted with several public interest assignments.

Crédit Foncier de France is created as the first

société de crédit foncierand issues its first

obligations foncières

Leading lender to local authorities

After WWII, Crédit Foncierde France becomes the

leader in the social housing sector with State subsidised loans

Caisse d ’Epargne acquiresCrédit Foncier

Compagnie de Financement Foncier

is founded

New legal framework for obligations foncières

Leading position on obligations foncières market

Issuance of a 50 years maturity € 1 bn

obligation foncière

1852 1860 1950 1999 2006

Page 4: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

4

Profile:Profile: Compagnie de Financement FoncierCompagnie de Financement Foncier

Missions

(Articles L 515 – 13 et seq. of the Code monétaire et financier, the French Monetary and Financial Code)

Grant or acquire eligible assets:

Loans with a first rank mortgage,

Local authorities and public sector loans,

Securities issued or guaranteed by local authorities and public entities,

Senior securisation units of mortgage loans or loans to public entities.

Issue obligations foncières (French covered bonds).

Page 5: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

5

Profile: Profile: Covered BondsCovered Bonds

>>> Recent legal developments in Europe have provided a clear definition for covered bonds (UCITS) and ensure :

Legal security Obligation to have a domestic legal framework which defines the covered

bonds, Privileged claim on eligible assets.

Economic security High quality assets: i.e public sector, first rank mortgages,

Permanent overcollateralisation.

Institutional Security Issuer is a European credit institution,

Specific control ensured by independent auditors.

Page 6: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

6

Transparency & Security: Transparency & Security: the French legal frameworkthe French legal framework

>>> Stringent legal and regulatory framework designed to ensure maximum protection.

Transparency of the activity

A dedicated balance sheet and a sole purpose,

Mortgage loans, loans to local authorities and public entities.

Protection of bond holders

The bankruptcy or liquidation of its parent corporation cannot be extended to the société de crédit foncier itself,

Investors benefit from the privilege of obligations foncières,

Permanent overcollateralisation,

No ALM mismatch. All assets and liabilities are swapped to euros.

Page 7: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

7

Transparency & Security:Transparency & Security: Rigorous MonitoringRigorous Monitoring

Regulatory controls

Compagnie de Financement Foncier operates under the French BankingAuthority’s control,

Two independent auditors regularly audit all company accounts.

Specific Controller, dedicated teams and systems specialised in :

Overcollateralisation certificates and issuance programmes,

Computing for validation of controls and loan characteristics,

Banking ALM for control of interest rate risks,

Legal aspects,

Revaluation of the assets underlying mortgage loans.

Page 8: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

8

>>> Compagnie de Financement Foncier is a subsidiary of Crédit Foncier, Groupe Caisse d’Epargne, France’s third largest banking group.

A robust and transparent balance sheet ( at June 30,2006)

Key Figures (1/2)Key Figures (1/2)

ASSETS (EUR Billion) LIABILITIES (EUR

Billion)

Mortgage loans 17.3 Obligations foncières 56.8

Loans to public entities 19.4 Other resources with

privilege1.9

Securitisation Units (RMBS) 13.9

Other eligible outstanding loans

2.2

Replacement securities 11.5 Subordinated debts and

capital 5.6

TOTAL ASSETS 64.4 TOTAL LIABILITIES 64.4

Page 9: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

9

Indicators and performance at June 30, 2006

Key Figures (2/2)Key Figures (2/2)

LTV ratio 51.8 %

Overcollateralisation108.6 %

Net incomeEUR 28.5 M

Page 10: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

10

Our Strength: Differentiation

in the Covered Bond Market

Page 11: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

11

A transparent structure with a unique business modelA transparent structure with a unique business model

Eligibleassets

SubordinatedDebt & Capital

Obligations Foncières

Derivatives (swaps)

Mortgage loans

Public loans

Bonds issued byLocal Authorities

Securitisation

Replacementsecurities

Compagnie de Financement Foncier

Investors

>>> The obligations foncières of the Compagnie de Financement Foncier enjoy the best AAA/Aaa/AAA (stable outlook) ratings from the three Rating Agencies.

Page 12: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

12

A A stablestable AAA , Aaa, AAA rating AAA , Aaa, AAA rating

>>> Compagnie de Financement Foncier has taken additional commitments to the three Rating Agencies, Standard and Poor’s, Moody’s and Fitch Ratings:

Strengthen its management rules in order to minimise its risks with regard to the regulation in force

Constitute an overcollateralisation greater than the legally required minimum level for a high residual risk coverage

>>> Observance of these commitments allows the obligations foncières of the Compagnie de Financement Foncier, even in a stressed environment, with a cash flow analysis, to be awarded a AAA/Aaa/AAA rating from the three leading Rating Agencies

Page 13: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

13

Transparency & Security: risk management (1/2)Transparency & Security: risk management (1/2)

>>> Compagnie de Financement Foncier is committed to maintaining overcollateralisation in order to eliminate risk exposure (credit risk, interest rate risk, liquidity risk and currency risk).

Credit risk

Loans : minimum rates of overcollateralisation,

Off-balance sheet operations, according to counterparty ratings.

Interest rate risk

All assets and liabilities on fixed-rate assets are swapped to floating rates,

Limitation of rate gaps (examined quarterly) and duration variances (< two years),

Stress test scenarios : to determine the level of non-privileged debt needed to meet obligations, even in worst case scenarios.

Page 14: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

14

Transparency & Security : risk management (2/2)Transparency & Security : risk management (2/2)

Liquidity risk

Maintenance of 1 Year’s equivalent of liabilities in high quality liquid assets,

Maintenance of sufficient cash to cover the total daily debt maturities.

Currency risk

No open positions,

All transactions swapped to euros.

>>> Strict management rules which ensure risk control and total transparency of financial information.

>>> Structured AAA/Aaa/AAA rating by the three major Rating Agencies (Stable outlook

Page 15: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

15

High Quality Assets

Page 16: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

16

Other eligible assets EUR2.23

bn

Loans to public entities EUR

19.43 bn

AAA State guarantees from

the European Economic Area

EUR 2.18 bnLoans guaranteed by

the French State EUR 8.74 bn

Securitisation units EUR 13.91

bn

Mortgage loans/ first-rank

guarantee EUR 6.42 bn

Replacement securities

EUR 11.48 bn

13.6%

30.2%

3.4%

21.6%

9.9%

3.5%

17.8%

A portfolio of high quality assetsA portfolio of high quality assets

EUR 64.4 bn

Breakdown of assets at June 30, 2006

>>> The quality of the assets results from the law on the société de crédit foncier as well as Compagnie de Financement Foncier’s extensive expertise.

>>> Loans guaranteed or granted to public entities represent more than 47% of total assets,

>>> Pure mortgage loans < 10%.

Page 17: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

17

An Investor Focused Funding Approach

Page 18: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

18

Four pillars of developmentFour pillars of development

Benchmarks

• In EUR or USD • Market making by at least 5 major banks per

benchmark

• Taps of existing benchmark issues give liquidity on the secondary market

• Ability to adapt to dynamic investor demand: currencies and structures

• Development of liquid yield curves in non-euro currencies :

AUD, CHF, GBP, JPY, CAD

Taps

Private Placements

Other Currencies

EUR 6.9 bn in obligations foncières issued year to date

Page 19: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

19

Recognised Issuing policy (1/2)Recognised Issuing policy (1/2)Swap spread performance 5Y

-10

-5

0

5

Jan-05 Jan-06 Jan-07

Le

ve

l v

s.a

sw

(b

p)

-10

-5

0

5

Pfandbriefe 5YObligations Foncières 5Y

Cédulas Hipotécarias 5Y

Page 20: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

20

Recognised Issuing policy (2/2)Recognised Issuing policy (2/2)Swap spread performance 10Y

-10

-5

0

5

10

Jan-05

Jan-06

Jan-07

Le

ve

l v

s.a

sw

(b

p)

-10

-5

0

5

10

Pfandbriefe 10Y

Obligations Foncières 10Y

Cédulas Hipotécarias 10Y

Page 21: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

21

Liquid Euro Benchmark curveLiquid Euro Benchmark curve

EUR Yield Curve

0

1

2

3

4

5

6

nov 07

jan 08

juin 08

oct 08

jan 09

oct 09

feb 10

jun 10

jul 11jan 12

oct 12

mar 13

jan 14

feb 15

jan 16

jan 17

oct 17

may 18

oct 21

- apr 55

Maturity

Issu

e A

mo

un

t (b

n €

)

2007

2006

Prior to2006

>>> 20 Euro Benchmarks, with maturities from 2007 to 2055 a total of 38.15 bn €

>>> Regular taps of existing benchmark issues ensure liquidity.

Total : € 38.15 bn

Total : USD 6.25 bn(4.8 bn € equivalent)

USD Yield Curve

0

0,5

1

1,5

Nov 07 Aug 08 Jan 09 Mar 09 June 09 Feb 10

Maturity

Issu

e A

mo

un

t (U

SD

bn

)

2007

2006

Prior to2006

Page 22: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

22

Currency diversification: Liquid Public IssuesCurrency diversification: Liquid Public Issues

Total : GBP 1.7 bn

(2.55 bn € equivalent)

Total : CHF 3.68 bn

(2.33 bn € equivalent)

Total : JPY 150 bn

(1 bn € equivalent)

Total : 1.2 bn AUD

(0.6 bn € equivalent)

GBP yield curve

Total : CAD 300 bn

(0.20 bn € equivalent)

300

425

325 350

300

dec 07 may 11 dec 12 jan 14 jan 27

CAD yield curveEuro CAD (M)

100

200

Mar 08 Jun 12

AUD yield curveKangaroo program (A$ 5bn)

250200

750

Feb 10 Sep 15 Jan 17

CHF yield curve

375

900

200

300350

500

600

450

Dec 06 Jun 09 May 11 Apr 12 Oct 14 Nov 16 Aug 18 Feb 31

JPY yield curveEuro Yen (Md)

50 50 50

Mar 10 Jan 11 Dec 11

Page 23: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

23

USD 1 000 000 000

5.5% Maturity 2009

3 y-r Issue

USD 1 000 000 000

5.5% Maturity 2009

3 y-r Issue

An internationally recognised issuance policy (1/2)An internationally recognised issuance policy (1/2)

>>> Selected transactions in 2006

Geographical distribution

Europe11%

Others4%

Asia50%

Scandinavia35%

Central banks

Investor placement

57%Pension funds

31%

Asset managers

8%

Others

1%Banks

3%

Page 24: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

24

An internationally recognised issuance policy (2/2)An internationally recognised issuance policy (2/2)

>>> Selected transactions in 2006

EUR 1 250 000 000

3.75% Maturity 2010

3 y-r Issue

EUR 1 250 000 000

3.75% Maturity 2010

3 y-r Issue

Geographic distribution Investor placement

Central Bank44%

Banks13%

Insurance7%

Asset Managers

36%Asia26%

Scandinavia22%

France33%

GermanyAustria

4%

Ireland/UK6%Italy

1%

Other8%

Page 25: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

25

EUR 1 000 000 000

3.875% Maturity 2055

50 y-r Issue

EUR 1 000 000 000

3.875% Maturity 2055

50 y-r Issue

Compagnie de Financement FoncierCompagnie de Financement Foncier:: an Innovative Issueran Innovative Issuer

>>> The transaction is the second AAA reference in euro after the French OAT 2055 launched in January 2005. It confirms Compagnie de Financement Foncier’s place as a leading issuer of obligations foncières and strengthens its position as one of Europe’s AAA issuers able to access the longest maturities.

UK (36%)

Switz.(2%)

Austria (1%) Asia

(1%)

Spain (3%)

Lux. (2%)

Ireland (5%)

Netherlands

(7%)

Germany

(8%)

France (10%)

Scandinavia (23%)

Banks (32%)

Asset Managers (25%)

Insurances (17%)

Hedge Funds (5%)

Central Banks (6%)

Pension Funds

(15%)

Italy (2%)

Geographic distribution Investor placement

Page 26: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

26

Funding PolicyFunding Policy Year 2006

>>> Objective : Eur 15 bn

>>> Eur 17.26 bn in issuance

Public issues : 12.93 bn

Private placement : 4.33 bn, 54 issues,average size per issue : EUR 80.23M

2006 Private placement by structures

2007 Year to date

>>> Objective : Eur 22-25 bn

>>> Eur 6.90 bn in issuance

Public issues : 6.18 bn

Private placement : 0.72 bn, 7 issues ,average size per issue : EUR 44.43 M

2007 Private placement by structures

Switchable1,4%

FRN53,8%

Inflation Linked6,1%

CMS Linked18,3%

Fixed Rate19,1%

Partly Paid1,4%

FRN5,6%

CMS Spread2,1%

Range Accrual

3,9%

Index Linked0,2%

Callable2,1%

Switchable8,5%

Partly Paid1,2%Zéro coupon

0,7%

CMS Link4,5%

Rev. Floater4,3%

Fixed Rate67,2%

Page 27: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

27

Private Placement:Private Placement: A pillar of our funding policyA pillar of our funding policy

A strong activity in the private placement market

CSA signed with 26 counterparties

2 different formats to issue: EMTN and AMTN program

A wide range of currencies (AUD, CHF, YEN, HKD, USD, GBP, ZAR) all issues are swapped vs. 3 months euribor

An ability to respond to a wide spectrum of structures

Requested by the market

A strong reactivity of CFF and a regular flow of issuance

A capacity to issue across all maturities

INVESTOR ORIENTED ISSUANCE POLICY

FLEXIBILITY

ADAPTABILITY

STRONG PRESENCE

Page 28: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

28

EUR 715M

CMS Linked

Maturity : 06/08/2024

EUR 715M

CMS Linked

Maturity : 06/08/2024

EUR 44M

RA European Inflation

Maturity : 27/03/2012

EUR 44M

RA European Inflation

Maturity : 27/03/2012

EUR 2 056M

Tec 10 Linked

Maturity : 25/07/2020

EUR 2 056M

Tec 10 Linked

Maturity : 25/07/2020

BRL 300M (EUR 107M)

11.16%

Maturity : 08/02/2008

BRL 300M (EUR 107M)

11.16%

Maturity : 08/02/2008

EUR 50M

Partly Paid

Maturity : 29/05/2021

EUR 50M

Partly Paid

Maturity : 29/05/2021

EUR 221.8M

Multi Index Linked

Maturity : 25/02/2013

EUR 221.8M

Multi Index Linked

Maturity : 25/02/2013

EUR 342M

French CPI Linked

Maturity : 17/02/2015

EUR 342M

French CPI Linked

Maturity : 17/02/2015

ZAR 565M (EUR 58M)

8.97%

Maturity : 12/10/2007

ZAR 565M (EUR 58M)

8.97%

Maturity : 12/10/2007

EUR 20.4M

3.25% Amortising

Maturity : 30/12/2044

EUR 20.4M

3.25% Amortising

Maturity : 30/12/2044

AUD 20M (EUR 11.7M)

FRN Range Accrual

Maturity : 29/10/2010

AUD 20M (EUR 11.7M)

FRN Range Accrual

Maturity : 29/10/2010

EUR 115M

FRN Range Accrual

Maturity : 16/03/2026

EUR 115M

FRN Range Accrual

Maturity : 16/03/2026

CHF 150M

CMS Linked

Maturity : 21/03/2014

CHF 150M

CMS Linked

Maturity : 21/03/2014

Private Placement Structured IssuesPrivate Placement Structured Issues

Page 29: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

29

Private Placement :Private Placement : 2006 Report2006 Report

TRENDS

The most popular structures: CMS link & switchable Increase in vanilla fixed rate interest. No real driving interest for

complex structures. Increasingly requested structures for inflation, equity, new interest

rate structure (switchable)

REGULATORY DEVELOPMENTS

IFRS standards redefine the accounting treatment of structured products

Page 30: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

30

Private Placement:Private Placement: Strategy for 2007Strategy for 2007

Total funding Eur 22 bn, including 25% of private placement (Eur 5.5bn).

Interest rate linked. Equity linked. Exotic currencies (SEK, NOK, BRL, ZAR, TRY, HUF…). Multi callable transactions.

Marketing approach to investors. Dynamic policy on diversified underlyings. More reactive buyback and restructuration strategy.

Minimum size : Euro, USD 10M, Yen 1Bn. Minimum maturity : 1 year. Non call period : 6 months.

OBJECTIVES

ABILITY IN TERMS OF STRUCTURES

STRATEGY

ISSUING RULES

Page 31: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

31

Appendix

Page 32: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

32Market-Making Agreement Market-Making Agreement for Jumbo for Jumbo Obligations FoncièresObligations Foncières

Jumbo obligations foncières issues of at least EUR 500 million, quoted on at least two European markets and which have obtained the rating of at least 2 rating agencies

At least three market-makers per issue, who undertake to quote firm buy and sell prices throughout the life of the issue

Market-making commitment for amounts of EUR15 million

Bid/Ask spreads of between 5 and 20 bp, depending on the remaining life of the issue

A specific quotation page (details of the issue, price, spreads, etc)

Repo facilities for issues exceeding EUR1 billion

>>> This general agreement has been signed by more than 20 banks

Page 33: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

33

Issuer InformationIssuer InformationEUR 75,000,000,000

Euro Medium Term Note ProgrammeEuro Medium Term Note Programmefor the issue of Obligations Foncières

Offering circularOffering circular: August 2006

CurrenciesCurrencies: EUR, USD, HKD, CHF, GBP, JPY, CAD.

Permitted maturityPermitted maturity: from one month

Minimum denominationMinimum denomination: EUR 1,000

Governing lawGoverning law: French law

Arranger Arranger Deutsche Bank

DealersDealers

Crédit Foncier de France

ABN AMRO

IXIS CIB

Merrill Lynch International

Barclay’s Capital

Crédit Suisse

Société Générale CIB

BNP Paribas

Dresdner Kleinwort

Morgan Stanley

Nomura International

Calyon CIB

HSBC

Page 34: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

34

ContactsContacts

Christophe FRANKELManaging DirectorHead of Financial [email protected]

Nathalie MICHELExecutive DirectorHead of Private Placements +33 1 57 44 92 [email protected]

Paul DUDOUITManaging Director Head of Long Term Funding +33 1 57 44 80 [email protected]

Sean SMATTDirector Public Issuance +33 1 57 44 92 [email protected]

Thibaut BIENAIMEPublic Issuance +33 1 57 44 92 [email protected]

Arnaud MAURIN Private Placements +33 1 57 44 98 [email protected]

Sandrine GUERINDeputy [email protected]

Anne SADOURNYInvestor Relations +33 1 57 44 72 [email protected]

Page 35: 1 Compagnie de Financement Foncier Obligations Foncières Sandrine GUERIN Deputy CEO, Crédit Foncier

35

DisclaimerDisclaimerThis document 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 of obligations foncières or any other investment product.

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.

Compagnie de Financement Foncier endeavors to ensure that the information is accurate and up-to-date, and 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 refuses all responsibility in the event of any mistake or omission relating to such information.

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 refuse 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 as regards 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

94224 Charenton cedex

France

www.foncier.fr

15 mars 2007