The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

France: Private placement market grows rapidly

French public placement is broadening to the SME level as real-money investors such as insurance companies diversify their investments.

The small French private placement market, traditionally a preserve of larger public companies, is growing rapidly. French bankers expect it will soon provide some €15 billion to €20 billion a year of funding and to account for more than half of the total debt of unlisted mid-market companies.

French real-money investors, including large insurance companies, notably Axa, have been keen to diversify away from large concentrations of exposure to the bank and sovereign sectors and to diversify instead into corporate credit that offers some yield. Insurance companies also have a capacity to stomach liquidity risk that they see a chance to monetize by taking on large blocks of exposure from borrowers that would have traditionally relied on bank loans.

It was back in 2012 that Axa announced a tie-up with Société Générale to source such investments from among French SMEs at a time when the French regulatory authorities were growing nervous of potential constraints on funding to French companies owing to bank deleveraging.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree