UK Municipal Bonds Agency
From Wikipedia, the free encyclopedia
| Company type | Public Limited Company |
|---|---|
| Industry | Finance |
| Founded | 2014 |
| Headquarters | , |
Area served | United Kingdom |
Key people | Sir Merrick Cockell, Sir Stephen Houghton |
| Services | Bonds |
| Website | www |
The UK Municipal Bonds Agency (UK MBA) is Local Government Funding Agency that exists primarily to reduce councils' capital long term financing costs in the United Kingdom.[1] It allows local authorities to diversify funding sources and borrow at a lower cost than is available from Central Government via the Public Works Loan Board of the UK Debt Management Office, which is part of HM Treasury.[2] The agency will sell municipal bonds on the capital markets, raising funds that it will then lend to councils.[3]
The UK MBA was founded in 2014.[4] It was founded by, is owned by and lends to Local Authorities within the United Kingdom.[4]
As of January 2016, 56 local authorities as well as the LGA and the Greater Manchester Combined Authority, have signed up as shareholders in the UK Municipal Bonds Agency.[5]
Shortly before December 2015,[4] a framework document setting out the working of the UK MBA was also distributed to councils with Cambridgeshire County Council becoming the first local authority to approve it in early February 2016.[5]
In October 2019, PFM Financial Advisors LLC were appointed as the managed service provider to the UK Municipal Bonds Agency.[6]
Purpose
The UK Municipal Bonds Agency provides councils with lower borrowing costs.[peacock prose] The goal of the UK MBA is to lower costs for council taxpayers and provide value for money for councils,[1] via the public bonds market.[1] The UK MBA will issue bonds backed by joint and several guarantees of the authorities involved.[4]