(Updates with context, UniCredit)
BRUSSELS, June 18 (Reuters) – Eight banks previously
excluded from syndicated debt sales backing the European
Commission’s up to 800-billion-euro ($950.7 billion) COVID-19
recovery fund will be allowed to take part in future issues, the
EU executive said on Friday.
The EU did not name the banks reinstated but a Commision
source said Nomura, UniCredit, Credit
Agricole, JPMorgan, Citigroup, Barclays
, Bank of America and Deutsche Bank
can take part in the next syndicated debt sale. The source said
the reinstated banks were included in a request for proposals
issued on Friday, a precursor to the next bond syndication for
the recovery fund.
The EU executive is still assessing the other two banks
banned from the bond sale. Those banks, Natixis and NatWest
declined to comment.
The European Union on Tuesday raised 20 billion euros with
the first sale of bonds backing its recovery fund which is set
to turn it into a leading European debt issuer.
But 10 of the bloc’s biggest primary dealers were banned
from working on the deal.
The exclusion related to past breaches of antitrust rules,
with the EU saying it wanted to see evidence they had taken
remedial action before allowing them to take part.
“The eight banks have provided information that allow the
Commission to conclude that their further exclusion from
participation in syndicated transactions in EU bond issuance is
not warranted,” the Commission said in an email.
Sources familiar with the situation told Reuters earlier
this week that the European Commission could soon give a green
light for those banned banks to return after taking steps to
alleviate EU concerns.
The EU Commission has completed a quarter of about 80
billion euros of long-term bond issuance planned in 2021 to back
the fund fundraising with Tuesday’s syndication, and two more
syndications are expected by the end of July.
($1 = 0.8415 euros)
(Reporting by Foo Yun Chee in Brussels, Valentina Za in Milan
and Yoruk Bahceli in London; Writing by Dhara Ranasinghe Editing
by Alison Williams and Rachel Armstrong)