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Photo: InspiredImages/Pixabay, CC0The London Borough of Redbrige council has raised £75m by issuing a bond which aims to beat the PWLB certainty rate by 118bps.
The issuance comes just weeks after PWLB significantly raised its 50-year lending rate, making borrowing for local authorities more expensive.
Advisers say the bond is the first RPI-linked bond issued by a local authority and comes with an effective interest rate of 1.87%. The rate assumes RPI of 2.5%.
According to Antoine Pesenti, senior managing director at Traderisks, Redbridge’s funding advisers, the bond shows how capital markets can provide “tailored” funding to fit with a local authority’s budgets and investment needs.
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