Question ID
2018_4279
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Other issues
Article
4
Paragraph
1
Subparagraph
1
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Not applicable
Article/Paragraph
n.a.
Type of submitter
Other
Subject matter
Definition of credit institution
Question

Is the definition of credit institution as stipulated by the CRR fulfilled, if a company operates in the area of credit granting while its holding company issues corporate bonds ultimately listed to the open market?

 

More precisely, does the issuance of bonds by a holding company, first as a private placement but ultimately listed in the open market, whose subsidiary operates in the area of credit granting  qualify  as “continuing issuing repayable funds”, or is this activity are exempted from the scope, e.g. based on the CRD IV, recital 14?

Background on the question

An entity has gained a creditor license according to a Member State’s laws.

The holding company of the Group companies (including the abovementioned entity), issued corporate bonds. According to its publication, the holding company issued bonds at par with an annual interest rate and the new bonds are expected to be included in the Open Market on a stock exchange.

An application to list the bonds to trading on the Regulated Market will be done within 4 months thereafter. The bonds were targeted to professional investors only, but as the issuer intends to list them to trading on the Regulated Market, the bonds shall be publicly available and tradeable. 

Submission date
Rejected publishing date
Rationale for rejection

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Status
Rejected question