EU lifts ban on eight banks barred from bond sales

(Updates with context, UniCredit)

BRUSSELS, June 18 (Reuters) - Eight banks previously excluded from syndicated debt sales backing the European Commission's up to 800-billion-euro ($950.7 billion) COVID-19 recovery fund will be allowed to take part in future issues, the EU executive said on Friday.

The EU did not name the banks reinstated but a Commision source said Nomura 8604.T , UniCredit CRDI.MI , Credit Agricole CAGR.PA , JPMorgan JPM.N , Citigroup C.N , Barclays BARC.L , Bank of America BAC.N and Deutsche Bank DBKGn.DE can take part in the next syndicated debt sale. The source said the reinstated banks were included in a request for proposals issued on Friday, a precursor to the next bond syndication for the recovery fund.

The EU executive is still assessing the other two banks banned from the bond sale. Those banks, Natixis and NatWest NWG.L declined to comment.

The European Union on Tuesday raised 20 billion euros with the first sale of bonds backing its recovery fund which is set to turn it into a leading European debt issuer.

But 10 of the bloc's biggest primary dealers were banned from working on the deal.

The exclusion related to past breaches of antitrust rules, with the EU saying it wanted to see evidence they had taken remedial action before allowing them to take part.

"The eight banks have provided information that allow the Commission to conclude that their further exclusion from participation in syndicated transactions in EU bond issuance is not warranted," the Commission said in an email.

Sources familiar with the situation told Reuters earlier this week that the European Commission could soon give a green light for those banned banks to return after taking steps to alleviate EU concerns.

The EU Commission has completed a quarter of about 80 billion euros of long-term bond issuance planned in 2021 to back the fund fundraising with Tuesday’s syndication, and two more syndications are expected by the end of July. ($1 = 0.8415 euros)
Reporting by Foo Yun Chee in Brussels, Valentina Za in Milan and Yoruk Bahceli in London; Writing by Dhara Ranasinghe Editing by Alison Williams and Rachel Armstrong

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.