Bond Awards 2020

Social Bonds - asset-backed/asset-based & covered bond of the year - CAFFIL

The SFIL Group's inaugural social bond in February 2019 was issued under a covered bonds format, by the French public development bank's subsidiary, Caisse Française de Financement Local (CAFFIL).

Deal Highlights

Issuer: SFIL
Size: €1 billion ($1.13 billion)
Maturity: 19 February 2027
Coupon: 0.5%
Use of proceeds: Access to essential services
External review: Sustainalytics
Lead managers: BayernLB, BNP Paribas, Credit Agricole CIB, ING, Société Générale
Credit rating: Moody's (Aaa); S&P Global (AA+)
Other highlights: First sustainable covered bond by a French issuer.

The €1 billion ($1.13 billion) transaction was the first sustainable covered bond to be issued by a French issuer.

It has a coupon of 0.5% and a tenor of eight years, maturing on 19 February 2027.

The proceeds of the bond were earmarked to be loaned to public hospitals in France, making it the first social issue in Europe dedicated exclusively to financing public hospitals, according to SFIL.

Philippe Mills, CEO of SFIL and chairman of the supervisory board of CAFFIL, said: "We are very pleased with the success of this first social issue focusing on financing public hospitals.

"As the main lender to the local public sector, SFIL will strengthen its key role in financing green and social projects in healthcare, clean public transport, water and waste management sectors. This issue is a resounding success in every respect: issue amount, financing conditions, the total number of investors and the number of new investors - with 502 currently in our investor base."

SFIL followed its inaugural social bond with another in May 2019, from which it raised a further €1 billion. In November, CAFFIL issued a €750 million green bond.