Eurazeo Awarded Portion of French Obligations Relance Bond Mandate
Posted on 12/02/2021
Eurazeo has been selected as the delegated investment manager for a €200 million portion (which may be raised to €250 million) of the Obligations Relance bond fund.
This €1.7 billion fund is among the measures being put in place under the France Relance recovery plan coordinated by the French Ministry of the Economy and Finance. Jointly created by the
members of the French Insurance Federation (FFA), together with AFG and France Invest, the fund is guaranteed by the French state and will operate under the aegis of the French Treasury. The Obligations Relance bond fund is designed to support French SMEs and mid-caps in pursuing their growth and transformation initiatives. The fund’s eight-year subordinated bonds will be repaid in full at maturity.
Investments by the fund are to be aimed at strengthening the equity capital of these companies as well as meeting specific ESG objectives, particularly those involved in the ecological transition. The interest rate of the Obligations Relance bonds will rise as these objectives are achieved, for the benefit of investees.
Eurazeo will be leading a consortium whose other members are Smalt Capital, Trocadéro Capital Partners and Zencap Asset Management. The choice of Eurazeo by these high-profile investors to head up the management of this portion of the fund attests to the Group’s private debt expertise, with €5 billion invested through a comprehensive range of funds to meet the needs of French and European SMEs.
