Programme debt clients want reliable service – no matter where they’re based

Stable operations, seamless transactions and greater transparency can increase performance and drive confidence to enter the burgeoning European market.

Global bond sales are strong as financial institutions, corporations and governments race to meet surging investor demand, so it pays to have a reliable service provider to operate their debt programmes.

A record $586 billion in January returns marked the busiest borrowing start of the year since Bloomberg began tracking such data in 1999. The spike follows 20 years of increased global issuance volume that has made the European market fertile for U.S. bond issuers. 

Managing that market efficiently and securely is crucial for U.S. and European companies to ensure timely settlements and prompt payments whenever and wherever the transactions take place. Programme debt experts can help firms choose the right issuing and paying agent (IPA) to meet operational challenges and fulfill regulatory duties.

Growing together

U.S. Bank successfully provides programme debt IPA services in the United States and is expanding its expertise across the Atlantic as part of a continued investment into the global IPA business. The bank is leveraging its productive issuance processes at home to create a consistent international model that is attracting more clients who want an IPA with the technology and flexibility to grow with them.

A debt programme is a cost-effective means to issue bonds, commercial paper, medium-term notes and other financial instruments into the market to avoid unnecessary duplication and delay.

Clients want to simplify a complex process. They want to onboard safely and reconcile payments swiftly. Moreover, they want to be valued by a knowledgeable and responsive team of experts in London and Dublin who have strong corporate relationships and can execute transactions in dollars, euros or other currencies in either market.

U.S. Bank is growing because it is nimble enough to respond to client needs and tailor solutions for them wherever their business is on its journey. 

“We’ve designed our operational process to allow for prompt receipt of cash proceeds on the morning of settlement,” says Darren Mockus, U.S. Bank Programme Debt Product Manager.

Delivering at home and abroad

When choosing an IPA provider, 24/7 around the clock access is beneficial. Though issuance in the European market is typically done via the Euroclear and Clearstream securities clearing houses (instead of the U.S.-based depository trust company system), European clients still want a consistent experience – no matter where they’re based.

They need to extract data in multiple formats and transfer files via automated protocols. And they want to use technology which can grow with them to meet increased demands in the future.

In this highly volatile market, the logic behind the push for more IPA options is simple: Issuers require quick access to issue bonds when the market conditions allow.

“They want a dedicated partner who can provide a consistent and streamlined international model for issuance.,” Mockus adds. 

 U.S. Bank is delivering in Europe the successful IPA services it has provided at home for years – a track record that includes more than 425 clients and 92,000 transactions worth $250 billion.

U.S. Bank is an experienced corporate trust provider with a solution for programme debt that provides 24/7 access, excellent client services and a future-proof mindset. Learn more about our European issuing and paying agent services.