Linklaters advises on launch of historic EU Issuance Service

Linklaters Luxembourg has advised Crédit Agricole Corporate and Investment Bank, as arranger, in relation to the implementation of the European Union issuance service (“EIS”) as part of the European Commission's NextGenerationEU. With the launch of the EIS, EU debt securities (including green component under the NextGenerationEU Green Bond Framework), issued under the new EIS – Debt Issuance programme, will be settled in the same way as large EU sovereign issuers. 

The EIS has been developed in cooperation with the National Bank of Belgium (National Bank Van België / Banque Nationale de Belgique) acting as central securities depository and the European Central Bank acting as paying agent. 

As of January 2024, the EIS – Debt issuance programme will coexist alongside with the current set up under the existing Luxembourg law governed debt issuance programme which will remain applicable to legacy EU ISINs. 

Linklaters assisted the arranger in addressing Luxembourg, German and Belgian law with a team headed by Melinda Perera, partner in the Capital Markets and Banking practice. Her team for this matter comprises Delphine Horn, Laura Mbo and Maëva N’Zogho. 

“We are delighted to have been selected to assist in this complex structuring and trailblazing settlement system. The EIS allows new EU debt securities to be settled in the same way as the securities of large EU sovereign issuers. This represents a significant step forward in developing the market structure that supports the trading of EU-Bonds.” Melinda Perera.

The European Commission is seeking to build on its strong funding year of 2023 with the intention of issuing up to €75billion of EU-Bonds in the first half of 2024.