The purpose of the Asset Purchase Facility Corporate Bond Purchase Scheme (CBPS) is to impart monetary stimulus by lowering the yields on corporate bonds, thereby reducing the cost of borrowing for companies; by triggering portfolio rebalancing into riskier assets by sellers of assets; and by stimulating new issuance of corporate bonds.
The Bank of England Asset Purchase Facility Fund Limited (BEAPFF) will purchase, via the CBPS, sterling corporate bonds representative of issuance by firms making a material contribution to the UK economy, as set out in the Market Notice.
The Bank, acting as Agent for BEAPFF, will participate in the secondary market by holding reverse auctions. The Bank reserves the right to carry out secondary market purchases via other methods, such as bilateral purchases, should it be deemed necessary.
The CBPS will commence on 27 September 2016. Further operational details and documentation are provided here.
Market Notices contain the operational details by which the Bank of England undertake the various facilities. They form part of the Legal Documentation.
Issuer and Security Eligibility
A list of the sterling corporate bonds which the Bank will offer to purchase, on behalf of BEAPFF, is published below.
Enquiries regarding the eligibility of bonds for the CBPS should be directed to email@example.com. Requests to consider additional corporate bonds which are not on the published list should include the ISIN, prospectus or offering circular, pricing supplement or final terms and, if relevant, the guarantee.
Counterparties in the Corporate Bond Purchase Scheme are required to submit to the Bank an indication of the bonds they would like to sell or take a position in (dealer axes). The template for providing this information is available below. It should be submitted to APF_CorporateBond_DealersInfo@bankofengland.co.uk preferably by close of business on a daily basis, but at least on the first working day of the week.
A table showing the representative share for each of the nine sectors of the Corporate Bond Purchase Scheme that the Bank is looking to purchase, is available here.