Obligations Relance: instructions for use

Relance Bonds: long term financing with a state guarantee

Announced in the government's recovery plan (4 March 2021), the Stimulus Bonds are intended to enable the continued development and investment of SMEs and ETIs by strengthening their capital base. They are financed up to 90% by the insurers participating in the operation and 10% by the participating management companies and third party investors.

Long-term financing

Their main characteristics give visibility to companies and make them very complementary to bank credit:

1. Dry bonds (no access to capital) subordinated to other financial debts, and without collateral
2. 8-year maturity with bullet repayment
3. Interest rate: 5.2% payable semi-annually (of which 90% in the Gold Fund at 5.00% and 10% in the Interest Alignment Fund at 7.00%)

Positive impact

Impact self-diagnosis systematic, free of charge and digitised for all companies financed in RO

0.15% interest rate bonus if CSR/impact targets are met

Human capital

True to its raison d'être, the positive finance, GENEO Partners will offer its individual and collective support services to financed SMEs and SMIs, particularly in the areas of external growth and positive impact

The ambition of Relance Bonds 

1. Enable the further development and investment of SMEs and ETIs through a highly subordinated instrument, at an attractive cost compared to the market (thanks to the partial state guarantee)
2. Supporting small and medium-sized companies with a good credit risk profile and a maximum leverage of 5x EBITDA in 2019, 2020 or 2021
3. Unit tickets between €2 and €100M

Contact

Mathilde PAOLI

Associate Director

Mathilde@geneocapitalentrepreneur.com

Disclaimer

At the initiative of the public authorities, a group of investors wished to create a specialised professional fund under French law in the form of a mutual fund governed by Articles L. 214-154 to L. 214-158 of the French Monetary and Financial Code ( " CMF"), the purpose of which is to acquire bonds - referred to as "Obligations Relance".

This project is part of the France Relance programme of the Ministry of the Economy, Finance and Industry and the OR Fund benefits from a State guarantee granted under the conditions set out in Decree no. 2021-318 dated 25 March 2021 relating to the State guarantee provided for in Article 209 of Law no. 2020-1721 of 29 December 2020 on the Finance Act for 2021 (the " Decree relating to the State Guarantee").

The project is subject to overall monitoring between the Investors participating in the project, the umbrella management company of the Gold Fund and the State. This document is provided for information purposes only. It should be read in conjunction with the legal documentation relating to the debt obligations.