Sfil group has successfully launched its 7th issue of the year 2023 under covered bond format Caffil for an amount of €500m with a maturity of 5 years and 3.5% interest rate. The proceeds of this social bond will be allocated to financing French public hospitals, it is the 5th dedicated issue in 2023.
The launch of this transaction was very well received by the market, with a total order book of €1.3bn and an oversubscription rate of x2.6. In total, the issue attracted 60 different investors, with 77% of the issue allocated to investors with a strong commitment to responsible investment.
To date, Sfil group has issued 5 social bonds as part of its Social Note Framework dedicated to the financing French public hospitals for a total of €3.8bn.
We are proud of Sfil group's support to French public hospitals. The great success of this transaction, both in terms of cost and size, reinforces our commitment as the leading lender to French public hospitals within the framework of our partnership with La Banque Postale.
Philippe Mills, Chief Executive Officer of Sfil and Chairman of the Supervisory Board of Caffil
This bond is the last benchmark transaction by Sfil group for the year 2023. Total funding raised by Sfil group for 2023 is expected to land in the context of €6.5bn.
For the year 2024, planned issuance by Sfil in the SSA* market is set to increase to between €3.5 and €4.5bn and planned issuance under covered bond format via Caffil is scheduled between €4 and €5.5bn. At least 25% of total issuance is planned under Green, Social, or Sustainability Bond format.
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* SSA Bonds : bonds of sovereign, supranational issuers and agencies