Lending to businesses (Tables F-I)
The amount businesses borrowed from UK banks and financial markets (in the form of bonds, equity and commercial paper) increased by £1.1 billion in March (Chart 3). Within this, net bond issuance (a longer-term form of borrowing from financial markets) was strong at £3.5 billion, partly due to merger and acquisition activity. In contrast, businesses made the largest net repayment of equity since March 2008 (£1.7 billion in the month), driven by share buybacks. There were also net repayments in the commercial paper market (a form of short-term borrowing from financial markets), which contrasts to relatively strong net issuance in recent months. Borrowing from banks fell by £1.0 billion.
Chart 3: Net financed raised by PNFCs2