Greggs (GRG) has raised £150 through the government created Covid Corporate Financing Facility.

The food to go operator confirmed today it has put in place the necessary processes and documentation to establish a commercial paper programme and has received confirmation from the Bank of England that Greggs is eligible to issue paper under the scheme.

It has “partially” accessed the liquidity available to the group under this facility by issuing commercial paper at a value of £150m with a duration of 11 months.

Greggs said that the credit available to Greggs under the scheme will be sufficient to meet the company’s liquidity needs for a prolonged closure period, including a scenario where its shops are unable to trade for the rest of the year.

In addition, it said it continues to have a constructive dialogue with its banking partners and is keeping open all options to address current and future financing needs.

Greggs previously said (on 23 March 2020) the impact of its shop operations remaining closed for a prolonged period would be a net weekly cash outflow of £5m, plus property rental costs of £11m each quarter.

Having now had clarification of the details of the Government’s Job Retention Scheme and following further examination of the group’s cost base, Greggs now expects that net cash outflow whilst closed will be £3.5m per week until the end of June.

From July onwards the cost is anticipated to be £4.5m per week including the cost of all property rents.

Its cash position is currently £47m before receipt of CCFF funding.

“Whilst many uncertainties remain, we have ensured that Greggs and its many stakeholders will be well-supported through this difficult period and that the company will be in a position to return to profitable growth as soon as conditions allow,” the company stated.