Launch of Relaunch Bonds and reinforcement of the attractiveness of Relaunch Participatory Loans

Bruno Le Maire signed, on November 16, the agreement granting the State guarantee to the Relance bond fund, marking the official launch of this initiative dedicated to strengthening the balance sheet of companies as part of the relaunch. With Participatory Loans and Relance bonds, companies can access attractive private financing by seeking various distribution channels, and thus finance their growth and investment projects. The Relance bonds are aimed at any French SME and mid-cap which wishes to develop and invest without, however, wishing to open its capital to external shareholders. financing Highly subordinated, with a maturity of 8 years and repayable in one go at maturity, the bonds Relance help strengthen the financial situation of SMEs and mid-cap companies, which will be able to benefit from them without modifying their governance. In this way, they facilitate the obtaining of additional financing and increase the rebound capacity of companies, in a context where the support measures emergency deployed by the Government to face the crisis are gradually coming to an end.

This measure will make it possible to mobilize 1.7 billion euros in private financing for French companies. Recovery Bonds will be acquired by management companies portfolio for the account of a fund of up funded by the subscriptions of investors institutional, particularly insurers. Like the Relance participatory loans, the State support takes the form of a guarantee to cover up to 30% of the first losses suffered by the investment fund on the Relance bonds. Thanks to this guarantee, companies will be able to access advantageous financing conditions compared to comparable market financing to which they can usually have access.

The launch of the Relance bonds therefore complements the public support system for companies emerging from the crisis, in parallel with the Relance Participatory Loans initiative.

In addition, companies will have easier access to Participatory Loans Relance. In particular, the eligibility criteria for companies belonging to a group are clarified and simplified and the credit quality criteria are also simplified (a rating external to the lender will no longer be required). It will also now be possible for companies to benefit in certain cases from a grace period of 6 years, against 4 years initially.