Patrice Ract Madoux
Président de la CADES
 

Newsletter
in PDF format

In the space of a decade, CADES has successfully consolidated its position as an issuer of the first rank and demonstrated the efficiency of the system put in place to pay down the social security debt assumed by the agency.
With each extension of its mission, and in particular when it assumed an additional 50 billion euros in debt on August 13, 2004, CADES has proven that it is adaptive and responsive. In doing so, it has also demonstrated that its economic model is robust.
CADES was established to amortize a total of 110.4 billion euros in debt. It had already assumed 102 billion euros of this amount on December 31, 2005. Since 1996, our agency has redeemed 29.2 billion euros in principal and 15.14 billion euros in interest. That leaves 72.7 billion euros to amortize, which means that CADES will be present in the bond market for several years to come.
After reaching 5.18 billion euros in 2005, revenue from the CRDS is expected to amount to 5.3 billion euros in 2006. In light of CRDS revenues, the redemption of bonds that have reached maturity (28.2 billion euros), interest payments (2.6 billion euros), the payment to social security funding organizations (6.61 billion euros), and the last of the scheduled payments to the French government (3 billion euros), the CADES issue program for 2005 totaled 35.3 billion euros and its result at year end was
-367 million euros. Benchmark euro bonds for a total amount of 14 billion euros, maturing in 2010, 2013, 2015 and 2020, were the predominant type of issue. In addition, CADES issued two bonds pegged to French inflation for a total amount of 900 million euros, with maturities in 2013 and 2019; four USD issues for a total of 3.5 billion euros; and several private placements in other currencies (AUD, GBP, USD, JPY, NZD, TRY, etc.).
CADES intends to be just as active this year, and has planned to issue debt of 26.8 billion euros. Since the year began, two CADESi bonds due in 2019 and 2013 have been tapped up by 200 million euros each. To date in 2006, CADES has also launched a 3 billion euro benchmark bond maturing in 2016, a 1 billion euro bond maturing in 2013, and a 1 billion euro private placement due in three years. EMTN issues total 300 million euros.
With the last payment to the French government having been made in 2005, the result for 2006 will once again be in positive territory.
To ensure that its program is successfully executed and that it meets the needs of investors over the entire yield curve, CADES plans to meet with the investment community on a regular basis.

CADES redeemed 20 EMTN (medium long term debt) for a total of 722 million euros, as well as a 2.3 billion euro bond.
CADES launched euro benchmark bonds totaling 14 billion euros via 4 issues maturing in 5, 8, 10 and 15 years, and tapped up two bonds pegged to French inflation (CADESi) by 900 million euros.
CADES also launched 6.2 billion euros of EMTN, mostly placed in currencies other than the euro.
CADES capitalized on positive market conditions to expand and diversify its financial tools as well as its investor base.
Finally, CADES issued 9.4 billion euros in negotiable debt instruments and, in so doing, confirmed its status as a benchmark issuer in the market for short-term paper.
Since it was established by the government order of January 24, 1996, CADES has managed to amortize 29 billion euros in debt (including 2.6 billion euros in 2005) out of the 110.4 billion euros that was entrusted to it by law.