The English Local Government Association (LGA), together with the Welsh Local Government Association (WLGA), started in 2011 to explore the possibilities of creating a Municipal Bond Agency. This project was carried out in cooperation with Local Partnerships, an entity jointly owned by the LGA and the Treasury (50/50). In January 2012 an outline business case was presented. This action probably triggered the PWLB to lower their rate the same year, which in turn was one of the reasons why the Municipal Bond Agency project did not gain momentum at that time.
The question of creating a Municipal Bond Agency was raised again by the LGA in 2013, which commissioned three advisors to review the Outline Business Case of 2012 and to suggest a way forward. Aidan Brady (with many years of experience of senior executive positions in banks, including Deutsche Bank) was the lead advisor with Francis Breedon (Professor of Economics and Finance at Queen Mary University of London) and Lars M Andersson. Their report was delivered in March 2014, presenting evidence of why a Municipal Bond Agency should be created. The report was subsequently approved by the LGA.
UK Municipal Bond Agency’s office is located in Westminster in London and Aidan Brady is now the chief executive officer, while former chairman of the LGA has assumed the role as chairman of the board.
For further information see www.ukmba.org