PRESS RELEASE

Mr. Patrice Ract Madoux, Chairman of CADES Board of Directors, presented in Paris and London a review of CADES’ 2009 issuing programme and its funding plans for 2010 to an audience of financial journalists.

2009 programme successfully achieved
A first rank issuer since its inception, and despite challenging market conditions, CADES (Caisse d’Amortissement de la Dette Sociale) was able to achieve its 2009 funding programme with significant success.
This was initially fixed at €33.1bn funding but exceeded its objectives, the final total raised being €35.7bn of which €25.8bn were mid- and long-term issues.
CADES provided the market with major mid- and long-term debt issues and made use of a broad spectrum of financial instruments with size and maturities as follows:
- € 8bn of bonds denominated in Euros with maturities from 3 to 11 years;
- € 7.6bn taps of existing bonds with maturities from 5 to12 years;
- € 0.9bn of a 10-year inflation-linked bond;
- € 230m of bonds denominated in British pounds (£200 m) with a 5-year maturity;
- €410m of bonds denominated in Australian dollars (AU$700 m) with a 4-year maturity;
- € 360m of bonds denominated in Swiss francs (SWF 550m) with maturities from 3 to 12 years;
- € 540m of bonds denominated in yen (¥ 7.1bn) with maturities from 5 to 7 years;
- € 5.56 bn of bonds denominated in American dollar ($7.75 bn) with maturities from 2 to 5 years;
- € 2.16bn of private placement in various currencies.
Meanwhile, CADES has operated successfully in the short term Treasury bill and commercial paper market issuing €61bn with maturities from 1 to 12 months and repaying €51,1bn of matured short-term papers. As at December 31, 2009, the total of Treasury bill and commercial paper outstanding was €9.9bn.

2010 SSFA objectives
After debates in the Parliament, the French government has decided this year not to raise social taxes nor transfer any debt to CADES. Meanwhile, it has increased the overdraft ceiling for ACOSS (Agence Centrale des Organismes de Sécurité Sociale) to €65bn for 2010.
Furthermore, during 2010 SSFA debates, the Public Accounts Ministry proposed to the Senate the creation of a Social Debt Commission. This is to comprise 5 senators and 5 representatives and will meet in Spring 2010 to discuss a government report covering the total amounts of social security to be raised and various possible options for its future funding. The commission is expected to deliver its conclusions in June 2010 in order for them to be considered in the SSFA for 2011.

Taking into account the 2010 forecasts, CADES’ amortisation objective is fixed at € 5bn. CADES would then reimburse €47.7bn and assume debt to be amortised of €86.9bn at the end of 2010.

2010 funding strategy: a € 15bn programme
Plans to maintain a flexible and diversified bond issuing programme are in place.
Issues are expected to comprise the following amounts and denominations:
- €6 bn benchmark bonds denominated in Euros;
- €2bn taps on existing bonds;
- €0.5 bn bonds linked to the French inflation rate;
- €2 bn benchmark bonds denominated in US dollars;
- €0.5bn bonds denominated in other currencies;
- €1 bn private placements and MTNs;
- €3 bn short term financing.
This €15 bn funding programme should put CADES among the top sovereign and quasi-sovereign issuers in Europe.

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