CMS BFL advises BNP Paribas and BFCM

CMS Bureau Francis Lefebvre legal adviser to BNP Paribas and BFCM on the conversion of Crédit Mutuel-CIC Home Loan SFH into a société de financement de l'habitat and on its EMTN programme.

CMS Bureau Francis Lefebvre advised BNP Paribas, acting as arranger and dealer, and BFCM, acting as dealer, with respect to the conversion of Crédit Mutuel-CIC Covered Bonds, henceforth known as Crédit Mutuel-CIC Home Loan SFH, into a société de financement de l'habitat.
Crédit Mutuel-CIC Home Loan SFH is now a credit institution licensed as a société de financement de l'habitat, such status having been recently created by Law No. 2010-1249 on Banking and Financial Regulation dated October 22, 2010 (Articles L.515-34 to L.515-39 of the French Monetary and Financial Code).

This conversion into a société de financement de l'habitat will enable Group CM-CIC to refinance its home loan portfolio in the most efficient manner. Indeed, holders of obligations de financement de l'habitat issued under Crédit Mutuel-CIC Home Loan SFH's EMTN programme now benefit from the statutory priority right of payment (privilège) referred to in article L.515-19 of the French Monetary and Financial Code, which was previously granted to sociétés de crédit foncier only, thus ensuring holders of such bonds a priority right over eligible assets of the société de financement de l'habitat.

In order to enable Crédit Mutuel-CIC Home Loan SFH to place bonds in new geographical areas, further options have also been added to the 30 billion Euro EMTN programme. In addition to French law obligations de financement de l'habitat, Crédit Mutuel-CIC Home Loan SFH may now issue Australian law "Kangaroo bonds" and German law "Namensschuldverschreibung", which also benefit from the statutory priority right of payment (privilège).

The CMS Bureau Francis Lefebvre team was made up of Grégory Benteux, Head of Finance and Structured Debt, assisted by Magali Béraud and Héloïse Roudaut (with respect to structuring aspects), Marc-Etienne Sébire, Head of Capital Markets, assisted by Rosetta Ferrère and Valérie Charreton (with respect to the EMTN programme and bond issuance aspects), Martine Audran (with respect to corporate law aspects) and Thierry Granier (with respect to tax aspects).

The German law side of the transaction was dealt by CMS Hasche Sigle (Philipp Melzer) and the Australian law aspects by Mallesons Stephen Jaques.

For further information, please contact :
CMS Bureau Francis Lefebvre
Florence Jouffroy / Tel: +33 1 47 38 40 32
Laetitia Mostowski / Tel: +33 1 47 38 40 74