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ABF approved for BoE commercial paper scheme
17th Apr 2020 07:31
(Sharecast News) - Associated British Foods said it had been accepted for inclusion in the Bank of England's programme to buy commercial paper during the Covid-19 crisis.
In a statement the owner of Primark said: "Associated British Foods plc has received confirmation that it is eligible to access funding under the Covid corporate financing facility."
The FTSE 100 company gave no further details. Also on Friday Whitbread said it had been accepted on to the programme.
ABF has been hit hard by the crisis, which has forced the closure of all Primark's stores. ABF has cancelled clothing orders with suppliers and reduced boardroom pay.
Commercial paper is unsecured short-term debt that companies use for their immediate funding needs.
The BoE said on 17 March that it would buy commercial paper from large, financially healthy companies to provide them with funding during the Covid-19 emergency. The BoE also bought commercial paper during the financial crisis of 2008-2009.
In a statement the owner of Primark said: "Associated British Foods plc has received confirmation that it is eligible to access funding under the Covid corporate financing facility."
The FTSE 100 company gave no further details. Also on Friday Whitbread said it had been accepted on to the programme.
ABF has been hit hard by the crisis, which has forced the closure of all Primark's stores. ABF has cancelled clothing orders with suppliers and reduced boardroom pay.
Commercial paper is unsecured short-term debt that companies use for their immediate funding needs.
The BoE said on 17 March that it would buy commercial paper from large, financially healthy companies to provide them with funding during the Covid-19 emergency. The BoE also bought commercial paper during the financial crisis of 2008-2009.