U.K. Covid Corporate Financing Facility: U.K. Government Updates Terms of Covid Corporate Financing Facility

Sullivan & Cromwell LLP - June 5, 2020
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This is an update to our memorandum of April 7, 2020, a copy of which is available here.

On May 19, 2020, HM Treasury (the “Treasury”) and the Bank of England (the “BoE”) announced several changes to the terms of the Covid Corporate Financing Facility (“CCFF”). The CCFF was initially introduced on March 23, 2020 to provide short-term liquidity for eligible companies. As at June 3, 2020, a total of £16.186bn of commercial paper, issued by 53 companies, had been purchased under the CCFF and remained outstanding. The recent changes to the CCFF aim to create incentives for, and promote the ability of, companies participating in the CCFF to repay their borrowings after the CCFF is closed to new participants in March 2021. In addition, the Treasury and the BoE intend to disclose the names of the companies that have outstanding commercial paper under the CCFF and the aggregate amount of commercial paper under the CCFF issued by each of those companies.