Burberry, Rolls-Royce Among Companies Leaning on Pandemic Emergency Funding -- Financial News
By Ryan Weeks
Of Financial News
A total of 56 companies, including British Airways, Burberry and
Rolls-Royce, borrowed 16.2 billion pounds ($20.3 billion) through
the Bank of England's coronavirus funding scheme in the three
months ended June 3, according to data released by the U.K. central
The Bank of England on Thursday published for the first time a
list of the companies that have borrowed money through its Covid
Corporate Financing Facility, which was set up on March 17.
The scheme was launched to ease pressure on corporate cash flows
caused by the coronavirus crisis. As part of it, the Bank of
England purchases commercial paper issued by firms with an
investment grade rating, thereby channelling funds to U.K.
Naming the companies using the scheme has attracted criticism
from members of the U.K. parliament, however. MPs including the
Conservative party's Andrew Mitchell and Labour's Margaret Hodge
have complained that the money lent out under the scheme isn't
being used to help companies weather the Covid-19 crisis because
some of the firms named are still paying dividends to shareholders,
according to a report in the Financial Times.
The Bank of England's data also indicates there is waning demand
for the emergency funding, with GBP16.2 billion arranged through
the scheme by June 3. In May, Financial News reported that GBP15.9
billion in financing had been distributed by the scheme as of April
(END) Dow Jones Newswires
June 05, 2020 05:31 ET (09:31 GMT)
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