Welcome to the UK Municipal Bonds Agency

Latest news: UKMBA launches maiden bond with Lancashire County Council

The UKMBA welcomes enquiries from local authorities – please contact Christian Wall or June Matte at 020 3530 7500 or by emailing cwall@ukmba.org or june.matte@ukmba.org.

​The UK Municipal Bonds Agency (UKMBA) was established to provide an alternative funding vehicle for UK local authorities. With 56 local authority shareholders and the Local Government Association, it providers the sector with access to market-based borrowing rates, significantly below the current PWLB rates.

Additional benefits include:

  • Protection from PWLB changes
  • Fully transparent financing
  • Avoidance of risky and excessive borrowing
  • Products to suit local authorities’ needs

To date, approximately 25 councils have signed up to UKMBA’s framework agreement, its basic loan document. UKMBA’s board has recently revised a structure of the Framework Agreement, creating a more flexible offer to local authorities.

In addition, a new Joint and Proportional Guarantee which will reduce a council’s overall liability is in place. Under the new structure: 

  • A council’s liability will be proportional to its outstanding borrowing
  • No council or group of councils can be singled out to cover a default
  • An authority with no outstanding loans is not a guarantor
  • Repayment penalties will not be automatic; they will be determined  by market conditions giving councils a choice

The Agency has also added several new features:

  • Forward rate loans
  • Short term loans
  • Floating rate debt
  • Transfer of loans between authorities (subject to credit worthiness)

Single councils and other local bodies, such as waste authorities, will be able to issue bonds outside the main guarantee, saving both time and money over a bespoke single  bond transaction.

Bond issues are in process now.  Additional information can be obtained by contacting June Matte or Christian Wall on 020 3530 7500 or by emailing cwall@ukmba.org or june.matte@ukmba.org.

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