The broad aim of the Facility is to help improve financing conditions for companies.
The Bank has been authorised to purchase up to £50 billion of high-quality private sector assets under the Facility. The following sterling assets are initially eligible for purchase: commercial paper, corporate bonds, paper issued under the Credit Guarantee Scheme (CGS), syndicated loans and asset-backed securities created in viable securitisation structures. In order to control the financial risks associated with such transactions, the Bank is authorised to purchase only high-quality assets, broadly comparable to investment grade. The Bank's operations will vary according to the structure of, and conditions prevailing in, particular markets; and will evolve through time, in the light of experience with operating the Asset Purchase Facility and feedback from the market.
Press release