Purchases of commercial paper are customary financial market transactions. The transaction with the Bank of England does not include any conditions that restrict capital distributions, or senior management remuneration. BASF pays interest on the outstanding commercial paper. Thus, the transaction with the Bank of England under BASF’s existing commercial paper programme does not have the character of state aid.
BASF preferably meets its external financing needs on the international capital markets. The company’s global commercial paper programme, which has an issuing volume of up to $12.5bn, is used for short-term financing. BASF has been active in the US commercial paper market for more than 20 years. In 2020, the company also started to issue on the European commercial paper market.
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