HM Treasury and the Bank of England have announced that they will be launching a Covid Corporate Financing Facility (“CCFF”) on 23 March 2020 to provide additional help to firms to bridge through Covid-19 related disruption to their cash flows. The CCFF will be separate to the initial £330bn package of government guarantees.
The new Covid-19 Corporate Financing Facility (CCFF) will support companies which are fundamentally strong, but have been affected by a short-term funding squeeze. This will act as a vehicle to support corporates who would ordinarily seek market-based finance for their working capital, but find themselves unable to access financial markets in this uncertain operating environment. This facility will primarily provide bridging support to see through the temporary nature of Covid-19 related disruption. It will have the ability to offer unlimited financing to eligible companies over the coming year.
The Bank of England will operate this facility on behalf of HM Treasury, and the Bank will put in place the facility as soon as possible. The Government will indemnify the Bank’s operations under this facility. Full details are available here