Redbridge leads UK local government bond wave

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By Lewis McLellan
14 Nov 2019

The wave of UK local authorities set to enter capital markets after the central government started charging them more for borrowing began to break this week as Redbridge Council raised £75m through a deferred bond. In doing so, it achieved better costs of funding from the market than it would from the Public Works Loans Board. More councils are set to follow.

“We have several local authorities looking at issuing bonds,” said Tom Archer, a senior associate at TradeRisks, which ran Redbridge’s deal.

“Local authorities have been coming to the market for inflation linkers or deferred funding, because the market has always had more flexible terms than the PWLB,” he ...

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