Caisse d'Amortissement de la Dette Sociale

Invested through
  • Triodos Impact Mixed Fund - Defensive
  • Triodos Impact Mixed Fund - Neutral
  • Triodos Impact Mixed Fund - Offensive
Asset ClassesImpact bonds
Impact strategyImpact Equities and Bonds
ISIN codeFR001400DZI3
Aligned with SDGs
  • No poverty
  • Quality Education
  • Gender Equality

Caisse d'Amortissement de la Dette Sociale (CADES) is a state-owned special financial vehicle for the financing and debt repayment of the French social security system. CADES' exclusive business model funnels global capital market funds to the French state's social welfare programmes such as public health insurance and the pension system. As a result, CADES contributes to the achievement of global sustainability targets, for instance, to good health conditions, the prevention of poverty or the reduction of inequalities. CADES was established in 1996 by the French government for the purpose of financing and extinguishing the debt accumulated by the basic national social security scheme.

Investment rationale

This social bond contributes to a balanced and sustainable social security system in France, so that it can provide access to essential services for its citizens in need. These essential services are a.o. healthcare payments, allowances for people below the poverty line, childcare benefits, retirement payments and allowances for (temporarily) disabled people. The social security system is funded from revenues such as taxes and levies. However, these revenues and payments are not in balance when the revenues decrease or payments increase due to economic recessions or increased usage of these benefits. In these instances deficits arise, and to keep the social security system in check and not put a burden on the current or future society through higher taxes, part of the deficits are transferred to CADES which then funds these deficits partly through issuing bonds. This social bond is specifically issued to finance deficits that arose from the recent Covid-19 pandemic.

CADES is playing a key role in the social security system through the debt assumption, which will help to restore the social security’s balance by contributing to its financial viability and the maintenance of its services.