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

May 17, 2023

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.

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Disclosures

U.S. Bank Global Corporate Trust is a trading name of U.S. Bank Global Corporate Trust Limited, U.S. Bank Trustees Limited and Elavon Financial Services DAC (each a U.S. Bancorp group company). U.S. Bank Global Corporate Trust Limited is a limited company registered in England and Wales having the registration number 05521133 and a registered address of 125 Old Broad Street, Fifth Floor, London, EC2N 1AR. U.S. Bank Global Corporate Trust Limited, Dublin Branch is registered in Ireland with the Companies Registration Office under Reg. No. 909340 with its registered office at Block F1, Cherrywood Business Park, Cherrywood, Dublin 18, Ireland D18 W2X7. U.S. Bank Trustees Limited is a limited company registered in England and Wales having the registration number 02379632 and a registered address of 125 Old Broad Street, Fifth Floor, London, EC2N 1AR. Elavon Financial Services DAC (a U.S. Bancorp Company), trading as U.S. Bank Global Corporate Trust, is regulated by the Central Bank of Ireland. Registered in Ireland with the Companies Registration Office, Reg. No. 418442. The liability of the member is limited. Registered Office: Block F1, Cherrywood Business Park, Cherrywood, Dublin 18, Ireland D18 W2X7. Directors: A list of names and personal details of every director of the company is available for inspection to the public at the company’s registered office for a nominal fee. In the UK, Elavon Financial Services DAC trades as U.S. Bank Global Corporate Trust through its UK Branch from its establishment at 125 Old Broad Street, Fifth Floor, London, EC2N 1AR (registered with the Registrar of Companies for England and Wales under Registration No. BR020005). Authorised and regulated by the Central Bank of Ireland. Authorised by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request.

All banking services are provided through Elavon Financial Services DAC. U.S. Bank Global Corporate Trust Limited and U.S. Bank Trustees Limited are Trust Corporations and not banking institutions and are not authorised to carry on banking business in the United Kingdom, Ireland or any other jurisdiction.

U.S. Bank is not responsible for and does not guarantee the products, services or performance of U.S. Bancorp Investments, Inc.