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Home > Markets and Payments > Asset Purchase Facility - Corporate Bond Purchase Scheme
 

Asset Purchase Facility - Corporate Bond Purchase Scheme

The Asset Purchase Facility's Corporate Bond Purchase Scheme aims to stimulate the economy by lowering the yields on corporate bonds. This has the following aims:

  • reducing the cost of borrowing for companies
  • triggering portfolio rebalancing into riskier assets by asset sellers
  • encouraging companies to issue more corporate bonds.
The Bank of England Asset Purchase Facility Fund Limited (BEAPFF) purchases sterling corporate bonds issued by firms making a material contribution to the UK economy, as set out in the Market Notices below. 
 
The Bank, acting as agent for the BEAPFF, participates in the secondary market by holding reverse auctions to purchase the stock of holdings specified by the Monetary Policy Committee (MPC), as set out in the Market Notices below.  The Bank, acting as agent for the BEAPFF, also reserves the right to carry out secondary market purchases via other methods, such as bilateral purchases, if necessary. Further operational details and documentation on the Corporate Bond Purchase Scheme are available.

The Corporate Bond Purchase Scheme started on 27 September 2016. On 27 April 2017, the Bank announced that it had completed the operations necessary to achieve the current target for corporate bond purchases totalling Stg 10 billion.

Sector shares

A table showing the representative share that the Bank has purchased for each of the Corporate Bond Purchase Scheme's nine sectors is available here.

News release

Corporate Bond Purchase Scheme: news release on eligibility and sectors 

Forthcoming Operations

 
The Bank has now completed the operations necessary to achieve the current target for corporate bond purchases totalling Stg 10 billion, on a trade date basis. Therefore there will be no Corporate Bond Purchase Scheme operations until further notice.
 

Market Notices

Market Notices contain the operational details of how we run the Corporate Bond Purchase Scheme. They form part of the Documentation. 

 

Issuer and security eligibility for corporate bond purchases

A list of the sterling corporate bonds which we will offer to purchase, on behalf of the BEAPFF, is published below:
 
Enquiries about the eligibility of bonds for the Corporate Bond Purchase Scheme should be emailed to eligible.securities@bankofengland.co.uk. Requests to consider additional corporate bonds which are not on the published list should include the International Securities Identification Number (ISIN), prospectus or offering circular, pricing supplement or final terms and, if relevant, the guarantee.
 
Counterparties in the Corporate Bond Purchase Scheme must submit to us 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. You should send your submission 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.
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