Euroclear France has opened its Negotiable European Commercial Paper (NEU CP) service to Italian issuers.
Through the service, Italian issuers will be able to issue their commercial paper through the French central security depositary’s (CSD’s) NEU CP service. UniCredit is the first issuer to use the service via Euroclear France.
A short-term debt instrument, the NEU CP is issued by companies to raise funds in line with regulations from the Banque de France. It allows users to diversify funding sources and fundraise across currencies, with costs reduced as a result of a broad short-term market at the investor network.
At the end of February 2023, NEU CP and medium-term notes were the second largest short-term market in Europe, totalling €320.9 billion in outstanding notes.
Guillaume Eliet, CEO of Euroclear France, says: “Offering this new service to Italian issuers reinforces our market position as a Pan-European issuer CSD for the global issuer community. We look forward to continuous cooperation with the Banque de France, as we jointly support the developing NEU CP market.”
Michele Montani, head of group treasury for UniCredit, comments: “Thanks to the joint effort between Euroclear and UniCredit over the past years, we are now leading the way for Italian banks to access the French market. By issuing NEU CP, we will be able to reach out to a more diversified client base, strengthening our Pan-European footprint further, while at the same time providing French investors with new investment opportunities.”
