Across Europe local authorities have worked together to create mutual, collective bond agencies. These agencies have meant councils (not just the large ones) can access bond markets at attractive interest rates.
There are several wider benefits. Individual councils don’t have to pay for individual assessments by rating agencies, interest rates are attractive and not subject to unexpected change by government fiat.
Our business case demonstrated that a mutual bond agency could be created in the UK, and that by working together councils have the potential for “credit enhancement” – achieving higher credit ratings by working together.
markluntley 