Newport City Council is set to refinance a historic bond.
The bond, taken out in 1995, was inherited by Newport by its predecessor local authority, Gwent County Council.
It is being refinanced through the Public Works Loan Board at a lower interest rate which the council confirmed will take place in April.
Newport also made clear the decision will not affect the council’s current financial position.
A report to councillors said: “The overall treasury management strategy is consistent with the current and previous years’ approach.
“The head of finance will work with the council’s treasury advisers regarding further borrowing.”
