ICMA boosts Euro PP but Solvency II concerns linger

Author: Tom Young | Published: 17 Feb 2015

The International Capital Market Association (ICMA) has given another boost to pan-European private placements (PEPP) by publishing a market guide. But obstacles to the market’s development remain, in the form of Solvency II capital charges across Europe.

The guide, launched on February 11, aims to create further standardisation and encourage best practice between borrowers, investors and arrangers.

The document, released by the Pan-European Private Placement Working Group follows the release of the Loan Market Association’s PP template documents in January. There has been little standardisation or guidance on the region’s PP market up until now, despite huge political will for it to supplement declining volumes of traditional bank lending finance for small to medium-sized enterprises (SMEs).

"You are essentially being punished as rating deteriorates and duration increases"

"I think this market guide we have produced will become the gold standard for issuances," said Katie Kelly, director, market...