Lancashire Council looks to raise £250m on bond market

LANCASHIRE County Council is looking at plans to raise at least £250m on the European bond markets as part of plans to reduce the amount it spends on borrowing.

It said it is exploring the Euro Medium Term Note (EMTN) programme for the first time to protect itself from the impact of future increases in interest rates.

Cllr Jennifer Mein, leader of the council, said: “The EMTN programme is part of our medium- to long-term plans for managing the council’s finances by ensuring the council is protected from increases in interest rates.

“Having clear plans in place will give us a safe and reliable mechanism as part of our overall financial strategy. We’re particularly pleased that this plan was developed by people from our own in-house finance team. They’ve used many years of private sector experience in this field to bring together a plan that will help the council minimise its borrowing costs.”

The initial plans have been approved by the county council’s cabinet. A further report confirming the details of the EMTN programme will be presented to the cabinet later in the year.

The council has a credit rating of AA2 from Moody’s – their third-highest rating and one point below the UK government.