Issuance in foreign currency

Commercial papers

The central government may raise short-term foreign loans via two Commercial Paper programmes, one Euro­pean (ECP programme) and one US programme (USCP programme). They may be used both as part of the cen­tral government's liquidity reserve and to facilitate a build-up of the foreign exchange reserve. Unlike T-bills, commercial papers, CPs, are non-standard products with a very high degree of flexibility. The issues can, for example, be adjusted in terms of settlement date, maturity (up to 12 months) and currency. The central government can issue up to USD 12 billion in each of the two programmes. Under the USCP programme, all issuances are in dollars, while it is possible to issue in a number of currencies, including dollars and euro, under the ECP programme. CPs are issued as zero-coupon securities directly to an investor through the central government's counterparties in the programmes. The market for CPs is typically very deep. The CP programmes therefore provide the central government with a quick and flexible access to liquidity.

Dealers in the central-government's CP programmes

ECP programmeUSCP programme
Bank of America Merrill Lynch InternationalBank of America Merrill Lynch International 
Barclays Bank Ireland PLCBNY Mellon Capital Market
Barclays Bank PLCBarclays Capital Inc.
Citigroup Global Markets Europe AGCitigroup Markets Inc.
Citigroup Global Markets LimitedGoldman Sachs & Co.
Coöperatieve Rabobank U.A.J.P. Morgan Securities
Credit Suisse Securities (Europe) Ltd.
Credit Suisse Securities, Sociedad de Valores, S.A.
ING Bank N.V.
​UBS Europe SE


Government bonds in foreign currency (EMTN programme)

The central government primarily issues bonds denomi­nated in foreign currency in order to maintain the foreign exchange reserve, but it can also raise foreign loans to finance the domestic borrowing requirements. When the central government borrows in foreign currency, the loan proceeds are placed in the foreign exchange reserve, and the balance on the central government's account increas­es by the equivalent amount in kroner. Under the EMTN programme, the central government can issue relatively quickly in currencies where the debt market is very deep, while reaching a diversified investor base both in terms of region and investor type.

Potential dealers on central-government's EMTN issuances

BNP Paribas
Morgan Stanley
Danske Bank
Nykredit Bank
J.P. Morgan