French State-Owned and Public Sector Entities: Key Players in the NEU CP Market

French state-owned and public sector entities are key players in the Paris-based Negotiable European Commercial Paper (NEU CP) market. The NEU CP market, created in 1985 and reformed in 2006, has grown continuously since 2022. It is currently the largest short-term debt market in the European Union and could be a key asset in a European Savings and Investments Union. Total outstanding NEU CP amounts were above EUR 310 billion on average in 2024. The largest issuers were financial institutions, which accounted for 44% of total issuances (excluding state-owned institutions). Domestic issuers accounted for more than 80% of total issuance. At the same time, forty-eight French state-owned and public sector entities issued NEU CPs last year and accounted for 34% of total issuance. These entities are diverse in terms of status, ownership and sector. They include public financial institutions, which are the largest issuers of NEU CPs, social security administrations, sub-sovereign governments, and social and affordable housing providers (SAHPs). Sub-sovereign governments accounted for half of the number of issuers among state-owned and public sector entities in 2024, but generally issue much smaller NEU CP amounts.

Key highlights include:
-- French state-owned and public sector entities are key players in the Paris-based Negotiable European Commercial Paper (NEU CP) market.
-- Largest NEU CP issuers include La Banque Postale, Unedic, Acoss, EDF and Bpifrance.
-- Sub-sovereign governments accounted for half of the number of NEU CP issuers among state-owned and public sector entities in 2024, but generally issue much smaller amounts.

"French state-owned and public sector entities are key players in the Paris-based Negotiable European Commercial Paper (NEU CP) market," said Mehdi Fadli, Senior Vice President in the Global Sovereign Ratings Group. "These entities are diverse in terms of status, ownership and sector. They include public financial institutions, which are the largest issuers of NEU CPs, social security administrations, sub-sovereign governments, and social and affordable housing providers (SAHPs)."