The objective of private sector asset purchases under the Asset Purchase Facility is to improve the liquidity in, and increase the flow of, corporate credit by making purchases of high-quality private sector assets including commercial paper and corporate bonds.
The Secured Commercial Paper Facility enables the purchase of investment grade sterling asset-backed commercial paper securities that support the financing of working capital. It can channel funds to a broad range of corporates whilst also underpinning secondary market activity and helping to enlarge the private issuance market, and so removing obstacles to corporate access to capital markets.
To achieve this, the Bank of England offers to purchase, at a minimum spread over risk-free rates, newly issued commercial paper in the primary market via dealers, and after issuance from other eligible counterparties by acting as a backstop for secondary market investors.
The secured commercial paper facility is open each business day between 10.00am and 11.00am.
Market notices contain the operational details by which the Bank of England undertake the various facilities. They form part of the Legal Documentation.
Market Notice: Asset Purchase Facility Secured Commercial Paper Facility
1 August 2012
Consultation on Working Capital Facilities Proposals
8 June 2009