BPCE - 2019 Universal Registration Document

NON-FINANCIAL PERFORMANCE REPORT

SUPPORTING THE ENERGY, ECOLOGICAL AND SOCIAL TRANSITION IN LOCAL REGIONS

It issued slightly more than €209 million in guarantees to allow these projects to go ahead. CEGC also provides guarantees to semi-public companies for sustainability projects. It guaranteed a loan issued to finance the factory built by the regional semi-public company, SHEMA, on behalf of LM Wind Power, which will build wind turbine rotor blades as part of the development of offshore energy production by the Port of Cherbourg. The guarantee was set up in 2019. CEGC worked with partner banks to guarantee a total of €2.7 million (1) . (A call for tenders was issued in 2011 to develop renewable energy in France under the Grenelle Act, with a goal of 6,000 MW in offshore energy production by 2020.) Groupe BPCE will be able to finance its customers in the healthcare and medical-social sector thanks to a new €80 million credit facility provided by the European Investment Bank in June 2019. The credit facility, named Plan Santé France, is earmarked for projects to modernize facilities requiring investments of under €50 million. The Caisses d’Epargne are longstanding partners of local authorities and finance their investment projects. To finance local authorities, Groupe BPCE regularly negotiates credit lines with the European Investment Bank (EIB).

In November 2019, the EIB granted Groupe BPCE a new €150 million credit line – Eau & Assainissement III (Water & Sanitation III). This credit line will allow the Group to finance local authority investments in water and waste water treatment, biodiversity, flood defense systems and curbing coastal erosion. Two new credit lines are being negotiated with the EIB for 2020. One will finance investments in public infrastructure energy efficiency improvements, for an amount estimated at €300 million. The other, for €100 million, will finance the development of greener means of transport by funding local authority investments in vehicles and infrastructure. Examples of financing include: Caisse d’Epargne de Bourgogne Franche-Comté, which • granted a €5 million loan to the Doubs Très Haut Débit public sector joint venture to develop the fiber optics network in the Doubs department; Caisse d’Epargne Bretagne Pays de Loire, which invested • €25 million in new tramway lines in Angers.

FINANCING FOR THE REGIONAL PUBLIC SECTOR, SOCIAL HOUSING AND THE SOCIAL ECONOMY BY GROUPE BPCE (2)

Change 2018-2019

Indicators (in thousands of euros)

2019

2018

2017

Total annual new regional public sector loans Total annual new social housing loans Total annual new social economy loans

4,308,946 2,524,172 1,490,237

4,026,637 3,002,815 1,914,676

5,229,984 2,451,444 1,858,393

7%

(15.9%) (22.2%)

In 2019, outstanding loans issued by the Banques Populaires and the Caisses d’Epargne in all markets amounted to €475 billion, making them major creditors of the French economy and local regions. MAKING MAJOR ENERGY TRANSITION PROJECTS A REALITY RENEWABLE ENERGY Groupe BPCE is one of the leaders in renewable energy financing for all sizes of projects in France through its different entities. The Banques Populaires and the Caisses d’Epargne are key sources of financing for local projects. The two networks draw on the expertise of several specialized subsidiaries such as Grand Ouest Environnement, Hypéria Finance and BPCE Energéco.

Groupe BPCE’s renewable energy loan outstandings amounted to €9.8 billion at September 30, 2019, focused on solar power (44%) and wind power (35%) assets predominantly located in France (64%).

Other 8 %

Biogas 2 % Biomass 3 %

Hydroelectric 8 %

Solar 44 %

Exposures € 9.8 bn

Wind 35 %

(1) Call for tenders was issued in 2011 to develop renewable energy in France under the Grenelle Act, with a goal of 6,000 MW in offshore energy production by 2020. (2) Rectified data.

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

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