Download Report

Paris, May 5, 2015
Press release
The European Commission authorizes SFIL to launch its
large export credits financing business
The European Commission announced today that it authorizes the public bank SFIL and
its subsidiary CAFFIL to extend their scope of activities to the refinancing of large export
credits. This new mission entrusted to SFIL by the French state consists in refinancing
credits-buyers contracts insured by Coface. SFIL will thus contribute to improve export
competitiveness of companies established in France.
The approval from the European Commission was the last step before the operational launch
of the new business wished and announced by the President of the French Republic in early
February 2015.
The national public scheme will rely on the ability of SFIL and its subsidiary CAFFIL to raise
funds on international financial markets for amounts and maturities that fit refinancing
needs for large export credits and for a price which is comparable to the best French covered
bond issuers. Refinancings will be available for every bank which works closely with
exporters established in France for its loans insured by Coface on behalf and with the
guarantee of the French State.
SFIL can now start its new mission as a development bank. It will come in addition to the
current business of lending to the French local public sector and public hospitals. SFIL will
thus diversify its business without changing its risk profile while strengthening its close link
with the French Government.
“This green light means that our new business is definitely under way. This was achieved
thanks to the active work from SFIL’s teams together with our partner banks, Coface, and of
course our shareholders. We are proud and happy that SFIL was chosen for this new
assignment” said Philippe Mills, Chairman and CEO of SFIL.
Investor contact :
Ralf Berninger +33 1 7328 8807
[email protected]
Press contact :
Christine Lair – Tél. : +33 1 7328 8736
[email protected]
European Commission - Press release
State aid: Commission approves extension of SFIL/CAFFIL activities to
financing of export credit loans
Brussels, 05 May 2015
The European Commission has concluded that an extension of the scope of French development bank
SFIL/CAFFIL's activities to also cover the financing of export credit loans was in line with EU state aid
rules. The Commission found in particular that these services are currently not provided to a sufficient
extent by private players. SFIL/CAFFIL will remedy this market failure without requiring new state aid
and without unduly distorting competition in the Single Market.
SFIL/CAFFIL is a development bank created following the resolution of Franco-Belgian bank Dexia and
the successor of Dexia Municipal Agency, whose main remit was to refinance public loans by issuing
covered bonds. The role of development banks is to grant loans to sectors where there is insufficient
availability of such loans from commercial banks because of the high risk or the low profitability
involved. Currently, SFIL/CAFFIL's remit is to grant loans to French local authorities and French public
hospitals.
France notified plans in late 2014 to entrust SFIL/CAFFIL also with the financing of new export credit
transactions entered into by banks. The Commission found that for various reasons, including changes
to the regulatory framework, French banks have significantly reduced their financing of export credit
loans in recent years. In turn, exporters and importers in France encounter significant difficulties in
setting up the financing of their export transactions. On this basis the Commission concluded that there
currently is a market failure for providing these services in France.
SFIL/CAFFIL would raise the required funding in the markets through covered bonds to ensure the
financing of those loans, and would not receive new capital from the State. Moreover, commercial
banks would essentially act as intermediaries for the conclusion of new transactions and the
management of the loans. They would compete for the provision of these services, which would be
remunerated at a market price.
The Commission therefore concluded that the measure would not involve new state aid, neither in
favour of SFIL/CAFFIL nor in favour of the banks.
The Commission also concluded that the aid measures granted to SFIL/CAFFIL in the context of the
resolution of Dexia that the Commission had approved in December 2012 remain compatible with EU
state aid rules after the extension of the scope of activities of SFIL/CAFFIL.
The non-confidential version of the current decision will be made available under the case number
SA.39690 in the State Aid Register on the DG Competition website once any confidentiality issues have
been resolved. New publications of state aid decisions on the internet and in the Official Journal are
listed in the State Aid Weekly e-News.
IP/15/4914
Press contacts
Lucia CAUDET (+32 2 295 61 82)
Yizhou REN (+32 2 299 48 89)
General public inquiries:
Europe Direct by phone 00 800 67 89 10 11 or by email