TradeRisks has recently entered the local authority market, and has provided a variety of financial advice to local authorities including: bond arrangement, treasury management services, advice and renegotiation of L-O-B-O’s. We are continuing to attract new clients in the local authority sector and firmly believe this sector can benefit from innovative financial ideas to cope with the challenging government spending cuts.
TradeRisks has consistently been at the forefront of unique funding solutions and designed to provide ongoing savings in treasury functions. Utilising capital markets enables Local Authorities to structure their debt in a way that more closely suits their funding requirements due to the availability of certain features that that are not available through traditional borrowing options such as PWLB.
Local Authority Housing
Due to the current Housing shortage in the UK, and lack of enough planned building by developers and Housing Associations to address the shortage, many Local Authorities are looking to re-enter the house-building market. Over a third of all Local Authorities in the UK had set up their own housing development companies by the end of 2016.
TradeRisks is able to provide advice on the most efficient funding strategies for these housing companies, whether they are wholly owned by the Council or are joint ventures. Where Local Authorities are looking for development partners, TradeRisks is able to leverage its extensive network of Housing Association relationships in order to find a suitable partner for Local Authorities.
TradeRisks is able to analyse potential funding structures (e.g. direct borrowing through the Housing Company or borrowing through the Council and on-lending) and provide advice on the most efficient funding structure for the specific development opportunity. TradeRisks would then provide advice on the most advantageous sources of funding available, examining PWLB, EIB, as well as institutional funding.
As expert in the Housing Sector, TradeRisks is also able to provide shadow credit ratings and appraisals of business plans for housing companies and advise on appropriate interest rates for any lending between the Local Authorities and their housing companies, to ensure full compliance with State Aid rules.