Brummie Bonds – £45 million breakthrough for new homes

#Brummie #Bonds 2 provide new housing in #Birmingham

Leader of Birmingham

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Labour’s pledge to build more homes has taken a major step forward following a multi-million pound deal between Birmingham City Council and a leading institutional investor.

Midlands-based pensions and life assurance specialists Phoenix Life, which employs around 600 people in Wythall, has agreed to invest in a ‘Brummie Bond’ and will lend the Labour-run council £45 million at favourable rates of interest.

The money will go towards building much-needed new homes, helping to deliver a key pledge by Birmingham City Council Labour leader John Clancy to tackle the housing crisis.

The interest rate the council will pay to borrow the money is, lower than that charged by the Public Works Loan Board (PWLB), which means the council will pay £1.4 million less in interest over the course of the loan than would have been the case had it borrowed from the PWLB.

Councillor Clancy said: “It is clear that the…

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