RBS downgrade, Peterborough bond impact, LGPS procurement, North Lanarkshire property deal

Standard & Poor’s downgrades RBS
Following the announcement of RBS’ restructuring plan ratings agency Standard & Poor’s has downgraded the bank to A-/A-2, outlook negative. “The changes amount to a material extension of RBS’ long running restructuring, further delaying the bank’s return to profitability,” wrote the agency. The negative outlook, said S&P, reflects the negative trend it sees for the UK banking industry risk.

Peterborough SIB success
Figures released this week have shown a 12% decrease in the number of short-sentence prisoners from Peterborough Prison being reconvicted. A Social Impact Bond launched by Social Finance in 2010 is trialing a new way of rehabilitating offenders, with investors receiving a return on their investment in the event of a measurable positive social impact. Justice secretary Chris Graying said: “The message is clear – our reforms are the right approach.” Social Finance warned that the results so far, which compare to an 11% increase in reoffending nationally, shouldn’t be used to infer that the entire six year scheme has been a success.

LGPS procurement framework available to all
An LGPS collaboration between eight councils is to launch a structure for global custody services. The framework will be available from mid-November to any LGPS fund and has been set up by National LGPS Frameworks, a venture between funds from Buckinghamshire, Cambridgeshire, Lincolnshire, Northamptonshire, Norfolk, Suffolk, Croydon and Hackney. Participants in the framework, which comes on top of procurement frameworks for actuarial and benefit consultancy services launched last year, will be able to access its ceiling prices, terms and conditions. JP Morgan and BNY Mellon are among the firms who have been awarded contracts.

North Lanarkshire in Barclays property company loan
North Lanarkshire Council has transferred its 975 commercial properties to an arms-length limited liability company, raising £45m. Barclays will lend the council the money based on the future rental income of properties in the company. The loan will then be repaid over 25 years at a rate of interest fixed for the first ten years.

Councils help fund university site
Northampton Borough Council and Northamptonshire County Council have helped the University of Northampton access £60m of PWLB money through the region’s Local Enterprise Partnerships. The borough worked with the South East Midlands Local Enterprise Partnership and the county with the Northamptonshire Enterprise Partnership to secure loans of £46m and £14m. The money will be made available over three years and the university will start groundwork at its new site next year.