COVID-19: COVID Corporate Financing Facility (CCFF)

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COVID-19: COVID Corporate Financing Facility (CCFF)

Published 26 March 2020

Where can you apply for CCFF?

Your Bank if it issues commercial paper (see below) or UK Finance can provide a list of Banks that are able to assist.

Who can apply?

Companies that make a material contribution to the UK Economy (UK or foreign owned, significant employment in the UK, Headquarters in the UK) are eligible. Other factors will include generating significant revenues in the UK, serving a large number of customers in the UK or with multiple operating sites.

Are there any pre-qualification criteria?

The CCFF is only open to firms that can demonstrate they were in sound financial health prior to the shock. In practice this means that a company will have to demonstrate it had a short or long term investment grade as at 1 March 2020.

What is Commercial Paper?

The fundamental of any form of commercial paper is that it is a promissory note, a written pledge to pay money. Typically it is an unsecured short term debt instrument, issued by a company to meet short term liabilities such as cash-flow, invoice financing etc.

What will the CCFF do with the commercial paper?

The CCFF is there to buy certain types of commercial paper. If a company issues a short term debt instrument, the CCFF will purchase it provided it has a maturity of one week to twelve months, it has a recognised credit rating and it is issued directly onto Euroclear and/or Clearstream.

Authors

Neil Warwick

Neil Warwick

Newcastle

+44 (0) 191 404 4178

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