Key Benefits:
This Agreement ImplementsArticle 8 of Act No. 2010-237 of 9 March 2010 for 2010 on the future investment programme,
Come on.
The State, represented by the Prime Minister, the Minister of Economy, Industry and Employment, hereafter referred to as the "State" on the first hand,
And:
OSEO, an industrial and commercial public establishment, headquartered in Maisons-Alfort (94710), 27-31 Avenue du Général-Leclerc, identified under number 483 790 069 RCS Créteil, represented by Mr. François DROUIN, President and CEO, hereinafter referred to as the EPIC OSEO second,
OSEO, financing, anonymous company with director and supervisory board, with the capital of 377,230,064 €, whose head office is at Maisons-Alfort (94710), 27-31 Avenue du Général-Leclerc, identified under number 320,252,489 RCS Créteil, represented by Mr.Joël DARNAUD, a member of the executive, below called OSEO financing, third.
The above-mentioned parties are hereafter jointly referred to as the "Parties", and individually a "Parties".
The following information was previously provided:
The rise in OWS activity to SMEs since 2005, and particularly in the context of the financial crisis, has led the National Commission on the Great Borrowing to recommend a strengthening of OWS equity and the provision of complementary refinancing sources.
As part of the 2010 Corrigendum Finance Act, it was decided to make available to ESO a refinancing facility of 1 billion euros, in order to allow the refinancing of all activities of the group. This loan will, in particular, enable OSEO to ensure the distribution of participatory development contracts (CDP), long-term loans without warranty, to SMEs and ETI (medium-sized companies) wishing to strengthen their own funds.
CONTENTS
1. Nature of action.
1.1. Description of the funded action and the objectives pursued.
1.2. More value of the actions of the future investment program.
1.3. Volume and rhythm of commitments in development contracts.
1.4. Applicable community supervision.
2. Definitions.
2.1. SMEs.
2.2. Independent ETI.
2.3. Companies.
3. Selection of beneficiaries.
3.1. Eligibility criteria.
3.2. Mode and decision-making and follow-up bodies.
4. Financial and accounting provisions.
4.1. Nature of the financial interventions of EPIC OSEO.
4.2. Opening a dedicated account in the writings of a Treasury Accountant.
4.3. Payment of funds.
4.4. State information on the funding disbursement forecasts by the OSEO EPIC.
4.5. Accounting Organization of the OSEO EPIC.
4.6. Back on investment for the state.
5. Organization and resources planned within the OSEO EPIC.
5.1. Possible management costs.
6. Assessment process.
6.1. Modalities and budget of assessments.
6.2. Quantified objectives and performance indicators.
7. Follow-up to the implementation of the action with the EPIC OSEO.
7.1. State information of the EPIC OSEO.
7.2. Redeployment of funds.
7.3. Final return of credits under the refinancing program.
8. Follow-up to the implementation of this Convention.
8.1. Monitoring the execution of the contract. ― Triggering successive slices.
9. Transverse provisions.
9.1. Communication.
9.2. Transparency of the device.
9.3. Entry into force of the convention and amendments.
1. Nature of action
1.1. Description of funded action and objectives
The action falls under program 864 "Small and Medium Enterprise Loans" in the Act No. 2010-237 of 9 March 2010 for 2010 The Program Officer is the Chief Executive Officer of the Treasury.
The State has decided to make available to OSEO a refinancing facility of 1 billion euros, in order to allow refinancing of all the activities of the group. This facility, established in the form of advance, with interest, allows OSEO to ensure the distribution of participatory development contracts (CDP), long-term loans without warranty, to SMEs and ETI (medium-sized companies) wishing to strengthen their own funds.
1.2. Evaluation of program actions
future investments
This action is part of the continuity of public support for the financing of the companies set up in the fall of 2009, which has helped to increase the recovery efforts made from the beginning of the financial crisis in 2008. It presents an exceptional character from the extent of the funding involved.
On 5 October, the President of the Republic announced a two-billion-euro support plan to strengthen the high level of business balance, especially small and medium-sized enterprises. The purpose of this consolidation is to help them cope with the financing needs of the economic recovery. This offer is available in two parts.
The first part covers 1 billion euros of participatory development contracts (CDP) funded by OSEO. These loans, subordinate (without guarantees) from 5 to 7 years old with a two-year depreciation deferral, are for SMEs but also for independent ETIs (up to 5,000 employees) growing, wishing to strengthen their financial structure without being forced to open their capital. The remuneration of these loans is indexed to the evolution of turnover (reduction of the rate in the event of non-realization of the forecasted turnover). Bank co-financing or the use of additional equity funding is systematically required when signing a CDP. The CDP thus complements the range of development contracts implemented by OSEO (see Article 3.1).
The second part consists of 1 billion euros, brought by the Caisse des dépôts et consignations, the Strategic Investment Fund and the subsidiary "CDC Entreprises" of the Caisse des Dépôts. It helps to strengthen the equity and quasi-business-specific funds.
These devices complement the measures already taken in the framework of the recovery plan implemented in 2008: the State has granted OSEO an additional capacity of €10 billion in funding in partnership with banks to help companies cope with the crisis and to strengthen their cash flow.
In addition, this action supplements the one opening a credit of €500 million to finance the strengthening of ESO's own funds within the program "Capital transactions involving the financial participation of the State", listed in the Act No. 2010-237 of 9 March 2010 for 2010
1.3. Volume and rhythm of commitments
Development contracts
Within the 864 "Small and Medium Enterprise Loans" program, 1 billion euros were opened by the Corrigendum Financial Act 2010-237 of 9 March 2010 to allow the refinancing of all OSEO activities. This loan will, in particular, enable the group to ensure the distribution of development contracts, including participatory (CDP), long-term loans to SMEs and ETIs wishing to strengthen their own funds.
The forecasting rate and disbursement of the slices are as follows:
Table 1. ― OSEO disbursement rate of contracts
and volume of successive tranches
| Amount in millions of euros | 400 | 600 |
| Years of commitment | 2010 | 2011 |
1.4. Applicable community supervision
The loans granted by the State to the EPOS are tariffed at the market rate and therefore do not include any help.
2. Definitions
For the purposes of this Convention, the following definitions are retained:
2.1. SMEs
Small and medium-sized enterprises, SMEs, are defined by Commission Recommendation No. 2003/361/EC, as published in the Official Journal of the European Union L. 124 of 20 May 2003.
2.2. Independent ETI
In this Agreement as a whole, including its annexes, the term "independent intermediate-sized enterprise (IEA)" means a combination of legal units:
―which constitutes an organizational unit of production of goods and services enjoying a certain autonomy of decision, the independence to be heard in the sense of the lack of control over that entity of another society within the meaning ofArticle L. 233-3 of the Commercial Code ;
― that meets the size criteria of intermediate-sized enterprises defined in the eighth and ninth paragraphs of Decree No. 2008-1354 of 17 December 2008 (company employing less than 5,000 persons, and whose annual turnover does not exceed 1,500 million euros or whose total balance sheet does not exceed 2,000 million euros) with respect to the criteria for determining the class of belonging of a company for statistical needs
2.3. Companies
In this Convention, the term "Companies" refers to independent small and medium-sized enterprises or medium-sized enterprises.
3. Recipient selection
3.1. Eligibility criteria
Funding from the "Small and Medium Enterprise Loans" program will ensure the refinancing of OSEO's development contracts with SMEs and TITs.
The family of development contracts (CD) is for companies that need to strengthen their financial structure to support their development. In particular, they aim to cover the financing of intangible investments or the increase in working capital requirements.
For needs of up to €600,000, development contracts are for financially healthy SMEs:
- in post-creation (CD creation);
- in transmission (CD transmission);
― in development (CD), especially when they are innovative or with strong international presence (CD innovation and CD international).
For needs ranging from €30,000 to €3 million, the participatory development contract is for SMEs and Mid-Sized Enterprises (ETI) (up to 5,000 employees), created for more than three years and financially sound.
The CDs are systematically associated with external funding:
- medium or long-term banking competitions (for a minimum of one to two times the amount of the CD according to the products);
- either, in the case of the participatory CD, contributions in equity or near equity equity of shareholders and/or venture capital companies, at the rate of 1 FP for 1 CDP.
3.2. Decision-making and follow-up procedures
The constitution and instruction of records will be carried out by the OSSO network.
Decisions are made by OSEO in accordance with the instructions on the organization of its decisions and the current risk policy at OSEO.
4. Financial and accounting provisions
4.1. Nature of the financial interventions of EPIC OSEO
The funds entrusted to the OSEO EPIC will be used as follows:
Table 2. ― Partition of action funding according to the nature of interventions
| Amount in millions of euros | | | | 1 000 | | 1 000 |
| % | | | | 100 | | 100 |
Table 3. ― Forecast financial model of action
| Estimated amount (in M€) | 1 000 | | | 1,000 to 2,000 | 2,000 to 3,000 |
| % of total investment | 50 to 33 per cent | | | 50 to 66 | |
4.2. Opening of a dedicated account in
the writings of a Treasury Accountant
For the implementation of the transactions covered by this Agreement, it is open on behalf of the EPSOOSEO in the writings of the fiscal controller and departmental accountant to the Ministry of Economy, Industry and Employment and the Ministry of Budget, Public Accounts and State Reform an account n° 446.3671 OSEO ― Future Investment Program ― Consumable Duties.
4.3. Payment of funds
Within two weeks of the publication in the Official Journal of this Agreement, the program manager "Small and Medium Enterprise Loans" grants EPSOSEO the advance of the open treasury, by Financial Act No. 2010-237 of 9 March 2010 to the amount of 1 billion euros according to the terms defined by agreement between the DG-Trésor, the AFT and the EEPIC OSEO.
CIPO OSEO files the corresponding amount on the account referred to in section 4.2, which is open in the writings of the budgetary and departmental accountant to the Ministry of Economy, Industry and Employment and the Ministry of Budget, Public Accounts and State Reform for the implementation of the operations covered by this Agreement.
CIPO OSEO and OSEO finance a loan agreement of up to 1 billion euros callable by successive tanches and financed from the refinancing account opened under section 4.2.
All quarters, up to the end of 2012, OSEO funding addresses a request for the drawing of this loan to the EPIC OSEO corresponding to the most total amount of development contracts that have been awarded since the beginning of 2010, reduced amounts already drawn.
The drawing of the loan will interest the rate of the constant maturity at ten years CNO-TEC 10 calculated and published on the last working day before the Bank of France draws on behalf of the Committee on Bond Standardization. This rate will be increased by a management margin of 5 basis points, which may be reduced under the conditions set out in section 6.1. These interests are placed on the refinancing account opened under section 4.2.
For each drawing of the loan, the compensation for the advance granted by the State to the EPOSEO is the total of that paid by OSEO funding to the EPOSEO. These interests are placed on the refinancing account opened under section 4.2.
4.4. State information on forecasts
disbursement of funds by the OSEO EPIC
CIPO OSEO is responsible for developing a forecast schedule for disbursement of funds deposited in the Consolidated Revenue Fund, which is forwarded quarterly to the Commissioner General for Investment and the Agence France Trésor. It ensures consistency between this disbursement schedule and the recipient selection schedule referred to in section 1.3.
The institution shall inform the budgetary and departmental accountant to the Ministry of Economy, Industry and Employment and the Ministry of Budget, Public Accounts and State Reform with which the funds received pursuant to this Agreement are deposited of any transaction of a unitary amount equal to or greater than 1 million euros that will affect, in debit, the Account of the Treasury to the Bank of France or the Account of the Treasure to the Treasury to the This information is communicated before 4 p.m., local time, on the business day that precedes the requested day for the financial regulation of the transaction.
The financial regulation of an operation that has not been advertised in advance under the conditions defined above may be effected on the working day following the day requested for that regulation. The Chief Executive Officer of the Treasury or his representative shall immediately notify the establishment at the origin of the transaction, as well as the Departmental Accountant and Budgetary Comptroller with whom the funds are deposited.
4.5. Accounting Organization of the EPIC OSEO
The OSEO EIC shall take all necessary steps to monitor individually the management of the funds entrusted to it under this Agreement, including by creating the necessary accounting subdivisions and by organizing a dedicated analytical monitoring by action, in order to ensure compliance with the information obligations set out in Article 8 III of the Corrigendum Financial Act for 2010. For this purpose, the wording of each movement on the account clearly identifies the relevant accounting subdivision.
CIPO OSEO communicates to DGFiP, DG-Trésor, and to the departmental budget and accounting controller before January 15 of each fiscal year (under the previous fiscal year) the information required to register in the State accounts the transactions carried out on its behalf and on its behalf by itself. This information includes, among other things, the completeness of the signed agreements and the indication of the amounts paid to end beneficiaries during each fiscal year.
4.6. Return on investment for the State
The return on investment for the State takes the form of the payment of the principal and the interest corresponding to the advance granted by the State to the EPIC.
The payment of interest to the State will be made annually as of December 31.
5. Organization and planned resources
within the EPIC OSEO
The constitution and instruction of development contract files will be carried out by the business managers of the OSSO network.
Decisions regarding the award of development contracts are made by OSEO in accordance with the instructions on the organization of its decisions and the risk policy in effect at OSEO.
5.1. Possible management costs
EICOSEO does not receive any remuneration for the management of this device. OSEO pays on the rate of interest charged to companies receiving development contract schemes.
6. Assessment process
6.1. Modalities and budget of assessments
The OSEO CIPO will devote the necessary means to assessing the effectiveness of the development contract system.
It will carry out, or carry out, studies, including econometrics, whose objective will be to highlight, by region and by sector of activity:
– the needs of companies targeted by this system in long-term financing;
― indices that may confirm or infirm the absence of an adequate supply of funding from market actors (market failure);
― the degree of satisfaction, by this device, of the needs of companies dissatisfied with the offer of the market.
Depending on the cost generated by these studies and the performance of the OSEO EPIC as defined in paragraph 6.2, the steering committee may decide to lower the level of the management margin set out in point 4.3, for one or more refinancing slices to come.
The results of the evaluations will be forwarded to the steering committee throughout the life of the projects.
These assessments will feed the reports of the Office of the Commissioner-General on investment to the monitoring committee for the future investment program and annual reports to Parliament.
6.2. Quantified objectives and performance indicators
The performance of the OSEO EPIC is assessed from the quality and reliability of both the following information and the evaluations conducted under 6.1.
CIPO OSEO will provide each month to the Treasury Branch, the Agence France Trésor and the Office of the Chief Investment Officer the following:
– a forecast table for the coverage of its liquidity needs;
This table presents in a stable format, months per month for the next twelve months, and year per year (at the end of December) for the next ten years, a detailed description of the jobs (commercial activity, securities portfolio, cash, real estate participation) and resources (short-term financing, long-term financial resources, other resources, collective provisions), for all OSEO entities.
– the overall cost of refinancing the OSEO group.
The calculation of this cost is the subject of a detailed explanation from the refinancing table mentioned in the preceding paragraph.
EICOSEO will also transmit the following elements to the Treasury Directorate General and to the Office of the Commissioner General for Investment:
― each quarter: authorizations and commitments of development contracts disaggregated by region and industry; co-financing of these contracts;
― each semester: an update of the disbursement schedule of funds and an assessment of the funds already consumed;
― each year, the instantaneous disaster rate observed on development contracts, broken down by region and sector of activity, compared to each class of companies classified by FIBEN rating and internal rating of OSEO;
― each year: the margin rate on development contracts, by sector of activity;
― each year: OSEO response rates to companies that have applied for a full loan and the average response time from the first application, even incomplete
7. Follow-up to implementation
of action with EPIC OSEO
7.1. State information of the EPIC OSEO
A point of step will be made by the steering committee under section 8.1 at the end of the first six months of the entry into force of this Agreement by possible adjustments.
The annual steering committee meeting allows to analyze the program's implementation and to reorient the action if necessary.
CEIU OSEO will promptly inform the Office of the Commissioner-General of the investment and general management of the Treasury of any difficulties involved in the implementation of this Agreement and propose any action that may be addressed.
For returns, the EICO OSEO uses the specific tool that will be made available to it, in connection with the general management of the Treasury, by the Office General for Investment. The information of this tool will be made by the services of the EPIC OSEO. The update will be done once per quarter and, if necessary, at first request.
EICOSEO is also committed to providing timely information to the monitoring of the delivery of the program.
7.2. Redeployment of funds
If it turns out, in the context of reports transmitted by the OSEO EPIC or annual investment evaluations, that it does not comply with the terms of this Agreement, uses the credits in an under-optimal manner, the Commissioner General for Investment may propose to redeploy the credits to another action within the same OSEO EPIC or to another OSEO EPIC.
Any redeployment of credits between different actions is approved by the Prime Minister, on the proposal of the Commissioner-General for Investment, after information from the Finance Committees and other relevant committees of the National Assembly and the Senate.
7.3. Final return of appropriations
under the refinancing programme
The return of appropriations is in the form of:
- the payment, in receipts of the financial contest account "ready and advances to private individuals or organizations" of the advance paid from this account under this Agreement;
― the remittance of the corresponding interest in revenues to the general budget of the State.
8. Follow-up to implementation
of this Convention
8.1. Follow-up to contract execution ―
triggering successive slices
A steering committee for this action is set up. It is composed of representatives of the general management of the Treasury, the Agence France Trésor, OSEO, and the Office of the Commissioner General for Investment
The purpose of the steering committee is to monitor the implementation of the convention, including the level of budgetary execution, the progress of the funded operations and the compliance with the planning.
In addition, the steering committee reviews the activity monitoring elements, as set out in paragraph 6.2, and eventually completed by the steering committee's requests.
It meets as necessary and at least annually. It may decide to change the periodicity of its meetings.
9. Transverse provisions
9.1. Communication
EPIC OSEO is committed to clarifying on its website that the transactions selected are financed under the state's future investment programme. These communications are coordinated with the Chief Investment Officer.
9.2. Transparency
CIPO OSEO undertakes to make available to the relevant committees of Parliament all documents relating to the future investment program in its possession, within the limits of business secrecy.
9.3. Entry into force of the Convention and amendments
This Convention, valid for a period of ten years, comes into force on the day of its publication in the Official Journal of the French Republic.
By acting, the parties involved may agree to amendments to the provisions of this Convention.
Made in Paris on 7 July 2010, in four copies.
For the state:
The Prime Minister,
François Fillon
For the EPIC OSEO:
President and CEO,
F. Drouin
Minister of Economy,
industry and employment,
Christine Lagarde
For the budget controller
and Departmental Accountant:
The budget controller,
Mr. Brault
