This article is a summary of recent announcements by the Banque de France and industry associations. It will be updated as often as possible. The various sources of information are available at the end of the article.
Onbrane’s team is attentive to the needs of all the players in order to propose optimization solutions as quickly as possible. These will be presented in this article.
Announcement Calendar
- 18 March: Announcement of the Pandemic Emergency Purchase Programme (PEEP) by the ECB.
- 27 Mars : 1ères opérations par la Banque de France.
GENERAL OPERATION OF REPURCHASES :
Criteria:
- NEU CP in EURO
- Minimum rating: A-2/P-2/F-3/R2 (https://www.ecb.europa.eu/mopo/assets/risk/ecaf/html/index.en.html)
- In the primary and secondary markets
- Primary market: minimum duration 28 days
- Maturity on the secondary market :
- an initial maturity of 365/366 days or less and a minimum residual maturity of 28 days at the time of repurchase, or
- 70 days residual maturity for quasi-sovereigns
- Minimum amount: EUR10 million
- Compatible with negative rate issues.
Implementation :
- each issuer must complete the “Template Program” (the characteristics of the program) received by e-mail from Banque de France
- Dealers will have to provide a term sheet at the time of each transaction, which they will use to offer their paper to the central bank. (XLS file, “ISIN” tab)
Discussions are underway with the Banque de France for :
- Simplifying the procedure,
- Including the Banque de France rating as an eligibility criterion,
- Determining whether issues in currencies other than EUR are eligible.
ONBRANE FEATURES
Of course, the NEU CPs negotiated on Onbrane are eligible for repurchase under the same conditions as securities negotiated over voice.
The platform’s “intermediary friendly” position, which encourages and supports the work of dealers, allows you to deal with the intermediaries of your choice, and therefore to choose those who will allow you to repurchase your securities.
A certain amount of information to be filled in in the term sheet is available on Onbrane (securities characteristics, ratings, ISIN, etc.). We are therefore entirely at the disposal of issuers and dealers to generate these term sheets automatically and without any input errors.
Do not hesitate to contact us to set up this functionality.
SOURCES
https://www.afte.com/eligibilite-des-titres-neu-cp-entreprises-au-programme-bce
https://www.redbridgedta.com/fr/market-intelligence/plan-relance-neu-cp-commercial-paper/
https://www.redbridgedta.com/fr/market-intelligence/plan-relance-neu-cp-commercial-paper/
https://www.ecb.europa.eu/mopo/assets/risk/ecaf/html/index.en.html
