Corporate sector purchase programme (CSPP)

Also on 10 March 2016, the ECB Governing Council announced that the APP would be extended to include purchases of investment-grade euro-denominated bonds issued by non-bank corporations. This corporate sector purchase programme (CSPP) enabled the Eurosystem to buy bonds issued by non-banks established in the euro area. Securities issued by credit institutions and by entities with a parent company which belongs to a banking group are not eligible.

The purchases began on 8 June 2016 and are normally conducted in both the primary and secondary markets (for public undertakings in the secondary market only, the same as under the PSPP). Purchases under the CSPP are conducted on behalf of the Eurosystem by the Nationale Bank van België/Banque Nationale de Belgique, the Deutsche Bundesbank, the Banco de España, the Banque de France, the Banca d’Italia and Suomen Pankki – Finlands Bank.

The eligible maturity bands for bonds that can be purchased under the CSPP were extended when the temporary pandemic emergency purchase programme (PEPP) was announced. From now on, bonds with an original maturity of less than 365/366 days are eligible for purchase with a residual maturity of 28 days under both the PEPP and the CSPP. In this context, non-financial commercial papers (CP) with adequate credit quality are also eligible for purchase under the CSPP.