The European Corporate Debt Private Placement (ECPP) Joint Committee, coordinated by the International Capital Market Association (ICMA), has launched an updated version of the European Corporate Debt Private Placement Market Guide.
The guide sets out a voluntary framework for common market standards and best practices which are essential for the further development of the ECPP market providing medium to long term finance especially to European mid-sized companies, in close alignment with the European Commission’s goal of bringing about a Capital Markets Union.
By the end of 2015, the ECPP market was estimated at EUR33 billion including German Schuldschein issuance.
An independent poll also indicated that 79 per cent of investors and 76 per cent of corporates were aware of the guide and the model transaction documentation, and some 50 per cent of investors and 25 per cent of corporates had used them.
The new edition of the European Corporate Debt Private Placement Market Guide has been produced as a result of evolution in the ECPP market. It now also covers aspects of the German Schuldschein market as part of the wider ECPP universe, and includes an appendix on general principles of, and best practice applicable to, ECPP deal amendments and waivers.
It was formally launched on 25 October 2016 at an ICMA event in Brussels with the support of the European Commission, and with the participation of the Banque de France and the Association of German Public Banks (VÖB).
A statement from the European Commission says: "Private placement markets represent an increasingly valuable source of funding for mid-sized firms in the EU as part of a range of market-based financing sources needed to build the Capital Markets Union in Europe. Today's initiative by ICMA will contribute to the development of this financing channel by providing the European private placement markets with a more standardised approach. The Commission welcomes the contribution of stakeholders to the development of Capital Markets Union."
Pierre-Olivier Cousseran, director, monetary policy implementation directorate, Banque de France, says: "With its wider scope, the new edition of the guide presented today by ICMA is another step forward towards a European private placement market. The Banque de France welcomes common market standards and best practices which contribute to strengthening financial stability.”
Martin Scheck (pictured), chief executive, ICMA, says: “We are encouraged by the degree of market participant support and recognition that the first edition of the ECPP Market Guide received. We are delighted to make available this updated version covering the German Schuldschein market, as well as best practice for ECPP deal amendments and waivers.”
