The Bank of England recently announced changes to the operation of the Covid Corporate Financing Facility ("CCFF"). The CCFF was introduced in March 2020 aimed at providing finance to very large corporate businesses purchasing commercial paper of up to 1 year. A summary of the scheme as introduced can be found here.
The new changes which have been introduced are:
- any business eligible to take part in the scheme which wishes to draw funds under the CCFF for a term which would extend beyond 19 May 2021 must provide HM Treasury with a letter undertaking to restrict dividends, capital distributions and pay to senior executives until the commercial paper has been redeemed, so as to ensure adequate reserves are available to enable businesses to repay their borrowings under the scheme at the maturity date
- businesses which have taken part in the scheme already may now repay their drawings early should they wish to do so. Any request to do so which is made ahead of 30 June 2020 will not be subject to an additional fee which would otherwise be levied
with effect form 4 June 2020, the Bank of England will be publishing the names of the businesses which have raised finance pursuant to the scheme every Thursday at 3pm. The published details will include the amounts which have been borrowed by each participant.
The content of this webpage is for information only and is not intended to be construed as legal advice and should not be treated as a substitute for specific advice. Morton Fraser LLP accepts no responsibility for the content of any third party website to which this webpage refers. Morton Fraser LLP is authorised and regulated by the Financial Conduct Authority.
FCA Introduces Temporary Changes to Handling Rules for Motor Finance Complaints
Jargon-busting Guide to Investment
