Commercial Paper

The Conversion Law of the Relaunch Decree 77/2020 opens up the possibility for Italian banks to issue Commercial Paper (CFBs) as an ordinary short-term funding instrument.

Main characteristics of CFBs:

  • debt securities under Italian law issued in series
  • maturity between 1 month and 36 months from issue date
  • may also be issued in dematerialised form
  • are treated as ordinary bills of exchange for all legal purposes.
  • Certain regulatory requirements (sponsor, retention, institutional investors, certification of last financial statements) may be waived in the case of CFBs issued by banks.

The ‘STEP Label’ was obtained, certifying compliance with the criteria and requirements in the STEP Market Convention documentation for CFBs with a duration of less than one year.


Legal Documentation


A CFB Programme has the following document architecture:

  • Information Memorandum, a disclosure document which contains the CFB regulation in addition to information on the issuer, including detailed information on the issued security.
  • Dealer Agreement, an agreement governing the relationship between the Bank, the arranger and any dealers.
  • Agency Agreement, a contract regulating the relationship between the Bank and the agent for the issuance of securities and the payment services associated with them.
  • Contractual Terms, a document prepared on the occasion of the specific issue that contains the financial characteristics of the securities.
  • Subscription Agreement, a document prepared on the occasion of the specific issue that contains confirmation on the subscription of the securities by the relevant investors.