Brussels, 11 July 2018 – Euroclear Bank SA/NV today announces that it has successfully completed a Euro-denominated, dual-tranche transaction of floating and fixed rate senior preferred (unsecured) notes under its newly-established Euro Medium-Term Notes (EMTN) Programme.
The €1 billion issuance by Euroclear Bank, the International Central Securities Depository (ICSD), comprised a €500 million 2-year floating-rate quarterly tranche and a €500 million 5-year fixed rate annual tranche, both rated AA/AA+ by Fitch and Standard & Poor’s.
The transaction was very successful and was heavily oversubscribed by a range of qualified investors from across Europe.
Euroclear Bank is well advanced with the implementation of CSD Regulation (CSDR). As CSD-banking service provider, CSDR requires Euroclear Bank to mitigate liquidity risks by using Qualifying Liquidity Sources (QLS) to support its day-to-day business and to handle stress scenarios. In this context, the net proceeds of the transaction will be used primarily to strengthen and optimise Euroclear Bank’s liquidity position by increasing the number of QLS on the Bank’s balance sheet.
The net proceeds may also be used as an alternative, and in some cases, a substitute, to the existing QLS which are made available to Euroclear Bank.
In addition to the EMTN issues planned, Euroclear Bank also increased its QLS at the end of June 2018 after the downstreaming of €600 million of anticipated proceeds from the parent company issuance by Euroclear Investments SA in the form of instruments that include Minimum Requirement for own funds and Eligible Liabilities (MREL) and other loss absorption features. The Bank also aims at establishing a Commercial Paper programme by the end of 2018.