Great success of the first ESG Bond transaction of the year 2026 by Sfil Group

Sfil Group has successfully issued its third bond of 2026, under covered bond format by Caffil, for EUR 1 billion with a maturity of 8 years. The funding raised will finance social investments by French local authorities, French public hospitals, as well as major French export contracts with significant social benefits.

The transaction generated strong demand, with an order book totaling EUR 2.1 billion. The placement of this issue demonstrates the robustness and quality of Caffil’s signature, with a total of 70 different investors participating.

Launched under Sfil Group’s Green, Social & Sustainability Bond Framework updated in November 2024, this transaction is the Sfil Group’s first thematic bond for 2026. It is in line with the group’s objective of achieving 33% of its annual long-term funding volumes in ESG format over the period from 2024 to 2030.

Since 2019, Sfil Group has issued 17 thematic bonds, including 10 social bonds, confirming its position as a leading ESG issuer.

The yield on this transaction is 40 basis points above the swap curve, corresponding to a spread of 5 basis points below the OAT.

The proceeds of this social bond could be used to finance a range of social investments:

• access to essential services, such as financing public education, early childhood facilities, and cultural facilities
• renewal and cohesion of territories, such as the construction of high-speed broadband networks or the financing of urban renewal programs.
• affordable basic infrastructure, such as a major export contract in a country receiving official development assistance (ODA) classified as a ‘least developed country’, ‘low-income country’, or ‘lower middle income country’.

“ This first thematic bond issue of 2026 perfectly illustrates our commitment to responsible and sustainable financing. By mobilising resources for local authorities, public hospitals and major export projects, we are affirming our key role in France’s economic and social development. I sincerely thank all investors for their trust and support, which make it possible to carry out these projects of public interest. ”

Philippe Mills

CEO of Sfil