U.K. Covid Corporate Financing Facility: U.K. Government Initiative Offers Short-Term Sterling Liquidity for Non-Financial Companies That Make a Material Contribution to Economic Activity in the U.K.

Sullivan & Cromwell LLP - April 7, 2020

On March 23, 2020, HM Treasury (the “Treasury”) and the Bank of England (the “BoE”) launched the Covid Corporate Financing Facility (“CCFF”) to provide short-term liquidity for businesses making a material contribution to the U.K. economy.

Under the facility, which is implemented by the BoE on behalf of the Treasury, the BoE will acquire short-dated commercial paper in the primary and secondary markets issued by eligible companies who had an investment grade credit rating or equivalent on March 1, 2020. The CCFF is one component of a broader set of U.K. Government-sponsored measures aimed at supporting U.K. businesses through the economic disruption caused by COVID-19.