COVID-19 Corporate Financing Facility
On 17 March 2020, HM Treasury announced the Covid Corporate Financing Facility (CCFF) as part of a wider package of tax and economic support measures designed to minimise the disruption caused to businesses during the Coronavirus pandemic.
The CCFF became operational on 23 March 2020, it is a joint scheme operated by HM Treasury and the Bank of England lending facility.
The facility is designed to support liquidity among “larger” firms, helping them to bridge Coronavirus disruption to their cash flows through the purchase of short-term debt in the form of commercial paper on terms comparable to those seen in markets in the period before COVID-19.
The scheme is open to companies that can demonstrate that they were in sound financial health prior to the impact of Coronavirus. However, to qualify for the scheme the companies must qualify as an “eligible issuer” and the commercial paper they are issuing must meet certain criteria.
Companies that wish to participate in the scheme must do so via a bank.
To find out more information please visit https://www.bankofengland.co.uk/news/2020/march/the-covid-corporate-financing-facility%20.