The Corporate Funding Association has access to the following funding sources:
• debt capital markets (long term and short term)
• bank credit facilities
• the European Central Bank refinancing operations
It also carries large amounts of cash and cash equivalents available in order to improve its capacity to serve the drawings of the credit facilities and face its own debt repayments.
All the loans granted by CFA are euro-denominated and at floating rate. All the funds raised in any other currency and / or at fixed rate are swapped into euro and floating rate. Thus CFA is not encouraged to maturity mismatches and its governing rules will restrict strictly such practice.
Access to the ECB refinancing operations is an important feature for the corporate Members in case of a disruption on the traditional debt markets. Based on the ordinary rules of the ECB’s monetary policy, CFA can make most of its assets eligible as collateral. Thus CFA puts its wide access to the ECB refinancing operations at the disposal of its corporate Members.