The umbrella group of authorities has announced that Aidan Brady, a chartered accountant with more than 20 years experience including a stint at Deutsche Bank UK, has been named lead advisor on the plans.
In addition Lars Andersson, the founder and first chief executive of the Kommuninvest agency in Sweden, and Francis Breedon, professor of economics and finance at Queen Mary University of London, will act as strategic advisors.
Last November it was announced that 18 councils had signed up to develop plans to create a Scandinavian-style collective municipal bond agency.
Modelling work undertaken for the LGA has concluded that a council-owned agency would allow councils to raise capital at lower rates than those offered by the Public Works Loan Board.
In an interview with Public Finance last June, Andersson also said the proposal would save councils money.
An outline business case will be finalised later this year, setting out the operating model, governance and capital structure of the agency. This will also set out the potential demand, pricing and ratings for the bonds, LGA chair Sir Merrick Cockell said.
‘Our plans to develop an agency have been endorsed by every type of local authority from places right across the UK,’ he added.
‘These appointments are an important step in our efforts to bring down the cost of borrowing so that councils can deliver even better value for local taxpayers.’
