Bpifrance launched its first Covid-19 bond issue

Bpifrance Entreprise

On 24 April Bpifrance Financement successfully launched its 1st Covid-19 Response Bond issue for an amount of €1.5bn with a 7-year maturity and a coupon of 0.125%. This is the first French bond of this type. The amount will be entirely used to support French companies affected by the current pandemic.

The funds will be used to finance cash flow loans – known as “prêts Atout” – recovery loans, or any other loan to support French businesses affected by the economic crisis as a result of the COVID-19 pandemic. These loans will help businesses to cope with cash flow difficulties in their daily operations, thereby safeguarding jobs in France and mitigating the social consequences of the pandemic.

Despite market volatility, the COVID-19 Response Bond received strong support from investors, raising €3.4bn, the largest amount ever raised by Bpifrance Financement. Over 90 investors took part in the bond issue, 41% of which were central banks or official institutions and 30% banks. 32% of the subscribers are based in France and 32% in Asia.