Commercial Paper Short Term Financing

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These conditions are meant to ensure that only firms with a good financial record can issue CP.

As per the guidelines, a firm is authorised to issue commercial paper provided: Since, the instrument is unsecured, if the company fails to pay the amount due, the buyers of the instrument, have no claim on the company’s assets.

Freely set (when the remuneration varies in accordance with an index clause that does not refer to a common interbank market, money market or bond market rate, the issuer must inform the Banque de France of such an arrangement before the issue).

All the securities issued within the framework of the same programme can benefit from a first-demand guarantee in accordance with the conditions established by order of the Minister of the Economy. The Banque de France may suspend or block an issue should the issuer fail to comply with these provisions.

The Banque de France may ask the issuer to supply additional information.

The financial documentation to be submitted to the Banque de France can be written in French or in a language other than French that is customary in the financial sphere, in cases where the securities can only be subscribed to or purchased for an amount equal to at least EUR 200,000 or the equivalent amount in another currency, and on the condition that the issuer inserts a notice in the financial documentation advising the investor, where applicable, to consult a French translation of the documentation, under the conditions laid down by order of the Minister of the Economy. 213-3 of the Monetary and Financial Code are authorised to issue negotiable debt securities:1.Credit institutions, investment firms and the Caisse des Dépôts et Consignations, provided that they comply with the relevant conditions laid down by the Minister of the Economy;1a.Negotiable debt securities can be issued at a price other than par, and can offer a redemption premium.If, at issuance, a negotiable debt security does not guarantee the repayment in full of the capital, there must be a warning to this effect in the financial presentation report.The primary purpose of issuing commercial paper is to raise short-term funds so as to meet working capital requirements of the firm.However, firms also raise money through CP’s to fill the gap between fund required currently and long term funds raised from the market.Issuers incorporated outside the European Economic Area must submit accounting data that has been audited in accordance with a public oversight system that is deemed equivalent by the European Commission.If the issuer is a company that is responsible for cash management within a group, the accounting data must be submitted for the group as a whole based on the consolidated financial statements of the consolidating company.4° A declaration by either an individual, stating their identity and their role within the company, or by a legal entity, indicating their company name and their place of incorporation, in which they accept responsibility for the financial documentation and certify that, to the best of their knowledge, the information submitted by the issuer is accurate and precise, that no information has been omitted such that the significance of the information may be altered, and that the documentation does not contain any false or misleading statements.Economic interest groupings and partnerships made up solely of joint-stock companies that meet the conditions set forth in point 2;6. The Agence centrale des organismes de sécurité sociale (France’s central social security agency) only for short-term negotiable debt securities;13.European Union institutions and international organisations;7. The Caisse d'amortissement de la dette sociale (social security debt amortisation fund) instituted by Article 1 of Ordinance 96-50 of 24 January 1996 on the reimbursement of social security debt;8. Associations governed by the Act of 1 July 1901 on the contract of association or by Articles 21 to 79 of the local civil code applicable in the Bas-Rhin, Haut-Rhin and Moselle departments that meet the conditions for the issue of bonds by public offering;10. Regional hospitals, the list of which is established by decree, up to the amount of the overall issuance ceiling established for each of them by the said decree.

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