Euro commercial paper is commercial paper issued in a foreign currency.  It is an unsecured, short term loan that is issued by a foreign bank in a foreign currency.  An example of this can be demonstrated whereas the Canadian corporation issues a short term bond with denominations in euros to finance its assets and inventory through the international money market.  This is euro commercial paper.  The debt is usually issued at a discount rate at going market rates.  Commercial paper is a debt instrument that matures from 1 to 270 days after the date of issuance.  It is only supposed to be used to finance inventories and current assets.  In the United States, it is not allowed to finance long term assets or fixed assets.  Euro Commercial paper is traded on international stock exchanges.  For example, the Ireland Stock Exchange has a $50 billion USD currency market.  It is a commonly traded stock for short term investment opportunities.  Euro commercial paper is issued by dealers .  They are issued by multinational corporations without backing or underwriting.   A selling price is not guaranteed to those that issue the paper.  There is also a secondary market for to buy euro commercial papers before maturity.  In 1987, there were as many as 350 Euro commercial programs with values up to $27 Billion dollars.   The paper started to appear in the 1960s when U.S. corporations issued notes directly to the euromarket to bypass US government export controls.  It disappeared shortly after the 1960s and reappeared in 1984 as an investor base expanded.       The Investment Banking Handbook.  John Peter Williamson http://www.ntma.ie/ShortTermPaper/commercialPaper.php http://dictionary.bnet.com/definition/eurocurrency.html http://www.icma-group.com/Regulatory-Policy/euro_commercial_paper.aspx