CADES taps up its inflation-linked bond due in 2007

PRESS RELEASE

CADES, “Caisse d’Amortissement de la dette sociale”, rated AAA/Aaa/AAA, launched on Friday the 2nd, 2007 a tap of its bond indexed to the French inflation due in 2017.
Joint-bookrunners for this tap were HSBC and SG CIB. The transaction, which inaugurates the 2007 CADES funding program, met a strong demand from investors.

The order book reached €1.4 billion in just one day, allowing CADES to raise €750 million with a spread of 7bp over the OATi 2017. The new tranche has a reoffer price of 97.407% to give a real yield of 2.129% to the investors. This tap is the largest ever done by CADES for a bond indexed to the French inflation and is bringing the outstanding of the CADESi 1.85% 25 July 2017 to € 2 billion.

The placement is mainly concentrated with European fund managers and banks; 46% was placed in the BeNeLux , 40% in France , 11% in the U.K and 3% in Germany .

To date, CADES has issued inflation-indexed debt totaling 11.6 billion euros.

CADES: A BENCHMARK ISSUER IN THE FINANCIAL MARKETS

Created in 1996, CADES is an administrative public agency placed directly under the joint authority of the French Economic and Finance and Social Security Ministries

Its mission is to pay down the debt accumulated by the general Social Security system between 1994 and 2006, a total of 107.7 billion euros, via a balanced financial structure and drawing primarily on a dedicated and exclusive resource (the CRDS tax). A quasi-sovereign issuer, CADES enjoys benchmark status in the international capital markets. It has been awarded the highest ratings by the principal international rating agencies (AAA/A1+, Aaa/P1, AAA/F1+), and a 0% Basel ratio weighting, which makes CADES one of the five largest non-government issuers in Europe .

CADES
LIGHTEN THE DEBT – BRIGHTEN THE FUTURE