PRESS RELEASE

Reflecting its close ties with the State, CADES is the only French issuer which is authorised to redenominate its domestic debt into euro in accordance with the French Treasury?s procedures and timetable, as it first announced a year ago.

The redenomination programme is in line with CADES? policy of offering the most liquid issues possible to investors in an ongoing effort to best meet their needs. In this respect:

• The "benchmark" bonds, that is, bonds denominated in FRF, and the multi-currency euro-fungible bonds, which total approximately FRF105 billion (16 billion euro), will be redenominated following the French Treasury?s procedures and timetable (see appendix for list of issues). The multi-currency euro-fungible bonds will, upon redenomination into euro, be consolidated into two tranches maturing in 2008 and 2012, of 4 billion euro and 2.4 billion euro respectively.

 

• Private placements and short term debt, which total approximately FRF103 billion (16 billion euro) will be redenominated into euro upon the request of investors and as agreed with them (see appendix for list of issues).

Upon completion of all the planned redenomination operations, two-thirds of CADES? bond debt will be denominated into euro, confirming CADES? status as a key player in this market.

CADES is an administrative public agency, rated AAA by the main financial rating agencies. It has been awarded a Cooke ratio of 0%, and as such its paper is considered to be of the highest standard, comparable to that of a sovereign issuer.

CADES was set up by ordinance of 24th January 1996, in order to provide the framework for the financing of the Social Security debt which was transferred to it, as well as the management of related fiscal resources.

1) List of issues to be redenominated in euro on 4^th January 1999

FRF10 billion 4% maturing 12^th October 2000
FRF18.859 billion 5.5% maturing 25^th April 2002
FRF15.299 billion 6% maturing 25^th July 2005
FRF17.123 billion 6.25% maturing 25^th October 2007
FRF650 million 5.18% maturing 16^th April 2003/2008
FRF2 billion 4.71% maturing 11^th May 2008 (TEC 10 index amortising bonds)
FRF1.5 billion 4.60% maturing 15^th July 2010 (TEC 10 index amortising bonds)
FRF8 billion 5.125% maturing 25^th October 2008
DEM3.750 billion 5.125% maturing 25^th October 2008
NLG2 billion 5.125% maturing 25^th October 2008
FRF6.5 billion 5.25% maturing 25^th October 2012
DEM1.5 billion 5.25% maturing 25^th October 2012
NLG1.5 billion 5.25% maturing 25^th October 2012

Remarks

 

• The 3 issues maturing 25^th October 2008 will be consolidated to form a single issue on 4^th January 1999, called the "euro 5.125% euro-fungible maturing 25^th October 2008" (SICOVAM code 57125). The redenomination of these issues as at 4^th January 1999 has required a modification of the terms and conditions of the bonds, which has received investors? approval.

 

• The 3 issues maturing 25^th October 2012 will be consolidated to form a single issue on 4^th January 1999, called the "euro 5.25% euro-fungible maturing 25^th October 2012" (SICOVAM code 57136).

 

• Upon investors? approval, the redenomination into euro of the TEC 10 index amortising bonds will be carried out in bonds with a euro denomination equivalent to FRF2 000 (current nominal amount).

2) Issues which will be redenominated at the request of investors and as agreed with them

The treasury bond programme ("billets de trésorerie" programme)
The commercial paper programme
The BMTN and EMTN programmes
Two operations in Euroland currencies:

- the "step-up puttable" issue of FRF2.635 billion maturing 17^th December 2008
- the "step-up puttable" issue of DEM500 million maturing 7^th January 2009

Holders who wish to convert their bonds should contact their financial intermediary or CADES directly.

Remark: the NLG3 billion issue maturing 29^th July 2004 carries no redenomination clause, and as it is paper-backed, there are no plans at present to redenominate the issue into euro.