Bonds are a form of borrowing, where investors are given a guaranteed fixed return (fixed-income securities), which can be issued by a local authority to obtain debt funding for projects. Bonds can focus on particular types of projects, for example for local energy projects ‘green’ bonds would be appropriate.

The costs, time and fees involved make this option rare. The amount borrowed should be large enough to justify the costs incurred in the transaction. These include a credit rating issued by an international rating agency.

Already have an account? Login