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Glossary

A
Agent

Entity acting in the name of the issuer (issuing and paying agent, dealer, etc.)

Amount (of a negotiable debt securities programme) (syn. ceiling)

Maximum authorised amount for an issuer's outstanding securities and defined in the financial documentation of the negotiable debt securities issuer.

Arranger

Credit institution chosen by the issuer to carry out the procedures with the Banque de France, the issuing and paying agent and the different dealers.

D
Dealer

Credit institution or intermediary chosen by the issuer for the underwriting of its negotiable debt securities. The dealer then sells the securities to the end-investors.

E
EUR-equivalent

Amount in foreign currency converted into euro, using the historical exchange rate applicable at the date of observation.

F
Financial documentation

This includes the presentation of the issuing programme and of the legal and financial situation of the issuer, documents presented at the general meeting of shareholders (or equivalent thereof) relating to the last two financial years and a certificate signed by the persons responsible for the programme’s financial documentation and who certify that to the best of their knowledge the information provided by the issuer gives a true and fair view and does not contain any omissions that may impair its meaning or any false or misleading information.

G
Guarantor (guarantee)

All the securities issued withinthe same programme can benefit from a first-demand guarantee in accordance with the conditions established by the order of the Minister for the Economy. In this case, the financial documentation must mention this and provide the same information on the guarantor as that provided on the issuer.

I
Initial maturity

The life of a security at its issuance date.

Initial subscriber of a security

The initial investor in a security on the primary market. The initial subscribers of negotiable debt securities include for example:

  • Credit institutions and related entities
  • Collective investment schemes (CIS)
  • Insurance companies, pension funds and mutual benefit funds
  • Industrial and commercial firms and sole traders
  • Public administrations (central, government, local, social security, etc.)
  • Private administrations (associations)
  • Households
  • Non-residents within the euro area
  • Non-residents outside the euro area
Issuer (of negotiable debt securities)

All the issuers referred to in Article L. 213-3 of the Monetary and Financial Code are authorised to issue negotiable debt securities:

1. Credit institutions, investment firms and the CDC, provided that they comply with the relevant conditions laid down by the Minister of the Economy;

1a. Financing companies, provided that they comply with the relevant conditions laid down by the Minister of the Economy and provided that the proceeds from these issues do not consist of redeemable funds from the public in accordance with Article L. 312-2 ;

2. Entities other than those referred to in Article 1 and 1a, provided that they fulfil the legal status, minimum capital and auditing requirements for launching a public offer of financial securities or for their financial securities to be listed on a regulated market and whose equity capital is specified by a decree, or equivalent conditions for entities with their head office abroad. They must belong to one of the following categories:

  • firms taking the form of joint stock companies or, for those whose head office is located abroad, a form recognised as equivalent by the authority referred to in Article D. 213-2, and with a paid-up capital of at least EUR 37,000 or its equivalent in foreign currency;

  • agricultural co-operatives and their associations with a paid-up capital of at least EUR 37,000,

  • joint stock co-operatives with a paid-up capital of at least EUR 37,000.

3. Public sector companies if they fulfil the conditions set out in 2;

4. Public sector companies without equity capital but which are authorised to launch a public offer;

5. Economic interest groupings and partnerships made up solely of joint-stock companies that meet the conditions set forth at point 2;

6. European Union institutions and international organisations;

7. The caisse d'amortissement de la dette sociale (social security debt amortisation fund) instituted by Article 1 of Ordinance 96-50 of 24 January 1996 on reimbursement of social security debt;

8. Local authorities and local authority groupings;

9. Associations governed by the Act of 1 July 1901 on the contract of association or by Articles 21 to 79 of the local civil code applicable in the Bas-Rhin, Haut-Rhin and Moselle departments that meet the conditions for the issue of bonds by public offering;

10. States;

11. Securitisation vehicles;

12. France's Central Social Security Agency (Acoss) only for short-term negotiable debt securities;

13. Regional hospitals whose list is established by decree, up to the amount of the overall issuance ceiling established for each of them by the said decree.

Issuing and paying agent (IPA)

Institution (credit institution, investment firm, Caisse des Dépôts et Consignations (CDC), legal person whose main or sole activity is the custody and management of financial instruments) established in France that oversees compliance with the regulatory issuance conditions. It is notably responsible for ensuring that the amount of the issue corresponds to the value indicated in the instructions and acts as a transfer and paying agent for the issue and fulfils its statistical reporting obligations to the Banque de France.

M
Medium-term negotiable debt securities

Negotiable debt securities with an original maturity of over 1 year. All the issuers listed in Article L. 213-3 of the Monetary and Financial Code are authorised to issue medium-term debt securities.

Minimum issuance amount for a negotiable debt security

This refers to the rating of an issuance programme assigned by a credit rating agency supervised by European Securities and Markets Authority [ESMA] in accordance with the regulatory conditions. Issuers can benefit from an exemption in the cases set out in Article D. 213-3 of the French monetary and financial code.

O
Outstanding amount (and flows) of negotiable debt securities

The outstanding amount is the stock of securities at a given time (T). It is calculated as follows:

Stock (T) = Stock (T-1) + Positive flows over the period (T-1,T) (i.e. issuance) – Negative flows over the period (T-1,T) (securities reaching maturity, issuer buy-backs, early redemption by the investor).

P
Par value

The par value of a security (also known as its face value) is that set at issuance. This par value determines the coupon payments, as well as the redemption value.

Premium

The premium is the difference between the par value of a security and its market price when

R
Rating of a negotiable debt securities programme

Rating of an issuance programme assigned by a credit rating agency supervised by ESMA in accordance with the regulatory conditions. Issuers can benefit from an exemption in the cases set out in Article D. 213-3  of the Monetary and Financial Code.

Reporting (by the issuing and paying agent)

Via their issuing and paying agent, negotiable debt securities issuers provide the Banque de France with statistical information about their securities, in accordance with the terms of the Order referred to in Article D.213-7.

The Banque de France determines the frequency and the contents of provided information on the basis of this reporting.

Residual maturity

Time remaining until the maturity or expiration of a security.

S
Short-Term European Paper (STEP)

The Short-Term European Paper (STEP) initiative was launched under the aegis of the European Banking Federation (FBE), the Financial Markets Association (ACI) and the European Money Markets Institute (EMMI). It aims to foster the integration of the European markets for short-term paper through the convergence of market standards and practices that issuers can choose to apply to securities issuance programmes on existing markets, such as the negotiable debt securities market. See also www.stepmarket.org

Short-term negotiable debt securities

Negotiable debt securities with an original maturity of between 1 day and 1 year. All the issuers listed in Article L. 213-3 of the Monetary and Financial Code are authorised to issue short-term debt securities.

Updated on: 10/27/2016 16:21