In December 2025, LGFA wrote to the Mayors and CEOs of councils to outline the financial covenant framework that would apply to water CCOs.
Over the past month we have been working through the legal process as the water CCOs that will commence operations in 2026 seek to join LGFA.
The key updates and progress to date are outlined in the attached document:
- Council Guarantee of Water CCOs
- Allowing Other Lenders to Share the Guarantee
- Security of Existing Councils Loans to a Water CCO
- LGFA Debt Transfer Options for a Council to a Water CCO
- LGFA Establishment Financing for Water CCOs
- Legal Negotiations Update
Sustainable Lending Product for Water CCOs
LGFA Lending to Water CCOs - January 2026 Update