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Redrow to receive £300mln in coronavirus support from the Bank of England

The housebuilder is also negotiating with its lenders for an extra £100mln headroom under an existing debt facility

Redrow PLC (LON:RDW) rose on Thursday on it confirmed a loan from the Covid Corporate Financing Facility (CCFF), a UK government fund to help companies hit by the coronavirus (COVID-19) crisis.

Set up by HM Treasury and the Bank of England, the CCFF will provide the housebuilder with a short-term loan of £300mln.

READ: Berkeley upgraded but Redrow and Taylor Wimpey downgraded as JP Morgan realigns view of housing sector amid pandemic

In a statement, the FTSE 250-listed company added that it is negotiating with its lenders for an extra £100mln headroom under an existing debt facility.

The firm said it is engaging in cost-cutting measures, with 80% of staff being furloughed, and senior management taking a 20% salary cut.

Shares advanced 9% to 440.8p on Thursday morning.

--Adds shares--