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Vigeo Eiris provides a Second Party Opinion (SPO) on the sustainability of the Caisse d’Amortissement de la Dette Sociale (CADES) Social Bonds Framework

The net proceeds of the Bonds, part of a Social Bond program launched in the second half of 2020, will exclusively finance or refinance, in whole or in part, the deficits of the various branches and regimes of the French Social Security system. Two laws voted by French Parliament will transfer €136 billion of social debt to CADES and extend its lifespan to 2033. The target program of an additional €20 billion bond issues is set to be issued before the end of 2020 and €40 billion considered for 2021.

This category is formalised within a Social Bonds Framework and is clearly defined. In addition, the eligible deficits are intended to contribute to three main social objectives (Access to essential healthcare services, Socio-economic development, and Social inclusion & autonomy) and provide clear associated social benefits.

Vigeo Eiris assigned a Second Party Opinion (SPO) on the sustainability credentials and management of the Framework issued by CADES. We express that the Social Bond Framework of CADES is aligned with the four core components of the Social Bond Principles 2020 and in line with best practices.

The potential contribution of the eligible deficits to social objectives is considered to be advanced, our highest level of assessment. The governance, selection, and evaluation of eligible deficits are formalised in the Framework. The process is clearly defined, reasonably structured, transparent and relevant.

The rules for the management of proceeds of the eligible deficits are clearly defined as they would enable a transparent and documented allocation process. The traceability and verification of the proceeds will be ensured by the Social Bond Committee and by an external auditor.

We deem the monitoring and reporting commitments to be among best practices, according to our methodology. The monitoring of issuances (proceeds management and impact reports) will be carried out by the Social Bond Committee. Moreover, CADES has committed to publish an annual report on the allocation of proceeds and on social benefits of the social issuances until the proceeds are fully allocated.

Vigeo Eiris has produced more than 260 second-party opinions on sustainable financing operations in Europe, Africa, Americas and Asia. We are a Climate Bonds Standard Approved Verifier.

La Caisse d’Amortissement de la Dette Sociale (CADES) is a public administrative institution created in January 1996 to repay the social debt accumulated between 1994 and 1996. CADES is a dismemberment of the French State classified as a Social Security Administration (ASSO). Its mission is to finance and suppress the accumulated debt of the general Social Security system (transferred by law) by taking out loans on the financial markets. From its creation until the end of 2018, CADES has been transferred EUR 260.5 billion of Social Security debt.

For more information, please contact – Sustainable Finance Team – 

To view CADES’ Press Release in full, please visit:

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