The challenges of recent years, brought about by events across the globe including the coronavirus pandemic, changing political and economic conditions, and increased regulation, have required corporates to be agile and explore new ways of accessing liquidity. We bring you the latest developments and innovations in the financial markets.
ECB eligibility criteria – Liquidity for corporate bonds and CP during the coronavirus pandemic
Expansion of the ECB's Corporate Sector Purchase Programme (CSPP) – to include corporate commercial paper – and the launch of the Pandemic Emergency Purchase Programme (PEPP) has focused the attention of corporate issuers keen to optimise the pricing and take-up of new bond issues on the ECB's criteria for eligible collateral. Our table illustrates key criteria to consider when assessing the potential eligibility of corporate bonds and commercial paper as ECB collateral, or under the CSPP or PEPP.Find out more about ECB eligibility criteria – Liquidity for corporate bonds and CP during the coronavirus pandemic
Easing liquidity concerns by unlocking capital from Real Estate: Sale & Leaseback Transactions
Heading into the COVID-19 crisis, demand from overseas investors for "trophy" real estate assets in the UK translated into significant sale and lease-back opportunities as businesses looked to alternative sources of finance. With liquidity becoming paramount in the face of the economic fallout from COVID-19, we are seeing a steady increase in companies looking at sale and lease-back transactions as a possible way to unlock cash that is tied up within their real estate, which can then be used to invest in their businesses, to discharge existing debt or to pursue alternative investments. Sale and lease-back deals may also offer tax advantages to the seller and strengthen its balance sheet, as this briefing explains.Find out more about Easing liquidity concerns by unlocking capital from Real Estate: Sale & Leaseback Transactions
Sustainability-Linked Bonds - Making Sense of SLBs, KPIs and SPTs
On 9 June 2020, the International Capital Market Association (ICMA) published the Sustainability-Linked Bond Principles (the Principles), a set of voluntary guidelines aimed at fostering the development of a sustainability-linked bond (SLB) market. SLBs are "any type of bond instrument for which the financial and/or structural characteristics can vary depending on whether the issuer achieves predefined sustainability / ESG objectives".
We take a look at the basics of the Principles and how they might be used. In addition, we discuss some of the points corporate issuers should consider when bringing this product to market.Find out more about Sustainability-Linked Bonds - Making Sense of SLBs, KPIs and SPTs
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