Cusip Global Services announced today the launch of its online European Bank Loan Application (EBL) platform.
European Agent Banks can use the EBL to request the assignment of CUSIP identifiers and ISINs for syndicated loans originated in Europe.
CUSIP Global Services will assign either a CUSIP number or CUSIP International number based on the domicile of the borrower, as well as a 12-character ISIN (International Securities Identification Number) for each deal and facility. Prior to the introduction of this new platform, unique common identifiers were not available for European bank loans.
"CUSIP Global Services understands that agent banks in Europe need an easy-to-access common identifier system to provide transparency and order in the syndicated loan market," said Darren Purcell, Director, CUSIP Global Services. "CUSIP Global Services developed a platform that will help improve efficiency and increase liquidity by making it easy to identify these loans."
Using the EBL, registered Agent Banks in Europe will be able to request identifiers for their new deals and facilities, add or change existing deal information, and terminate deals that have been paid off or refinanced.
European banks will also be able to make a one-time request for historical loan identifiers to populate their loan databases.
The growth of the global loan market, particularly in the last five years, and the labour-intensive nature of loan servicing have brought about the need for more automated processes, and the starting point for these automated processes is a unique identifier. CUSIP Global Services has a successful model that has worked well for U.S.-based Agents, and used that model as the basis to address the specific needs of the European loan market.
The CUSIP system will establish a unique common numbering system to reference syndicated loan credits. At present, different identification numbers represent the same credit in proprietary systems utilized by various market participants, such as administrative agents, lenders, traders, potential bal buyers, and various vendors.