In April 2025, LGFA wrote to the Mayors and CEOs of councils to outline the financial covenant framework that would apply to water CCOs.
Over recent months, water reforms have been progressing with many councils now having had their Water Service Delivery Plans (WSDPs) approved by the Secretary for Local Government.
The sector is now moving at pace to implement Local Water Done Well and therefore we intend to provide regular updates on our approach for lending to water CCOs.
This information sets out:
- An update on the legal discussions to date with water CCOs which would provide the basis for the security arrangements, guarantee structure and accession to LGFA’s multi-issuer deed.
- Confirmation of the proposed financial covenant framework for a water CCO.
- The options available for councils to transfer debt to a water CCO.
- Borrowing costs for water CCOs and credit ratings.
- LGFA’s ability to provide establishment financing to water CCOs.
- LGFA’s ability to provide committed standby facilities to water CCOs.
- GSS lending for water CCOs.
- Governance arrangements for water CCOs.
