Plans for a £250m “green bond” to fund the rebuilding of a waste-to-energy plant have been “paused” by the North London Waste Authority (NLWA) due to market volatility.
The NLWA, which manages waste transportation on behalf of seven London boroughs (Barnet, Camden, Enfield, Hackney, Haringey, Islington and Waltham Forest) has instead borrowed £250m from the Public Works Loan Board (PWLB).
It had previously planned to use a bond issued through the UK Municipal Bonds Agency (UKMBA) to rebuild the waste-to-energy facility in Edmonton as part of a £1.2bn renewable energy programme. However, “market conditions” were cited as the reason for putting the bond issuance on hold and sourcing a loan from the PWLB.
The £250m PWLB loan took place in February and follows on from a £280m PWLB loan in December 2021.
A statement from the UKMBA said that the bond issue had been “paused to assess how the market progresses”. A spokesperson added that “longer-term solutions were being considered involving forward-rate loans, forward-starting loans or interest rate locks”.
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