Glasgow £210m bond issue guaranteed by AGUK

Assured Guaranty UK Limited (AGUK) announced that it has guaranteed principal and interest payments on a £210 million private placement issued by City Property Glasgow (Operations SL3) Ltd, a newly formed special purpose vehicle (SPV) owned by Glasgow City Council to issue the bonds.

“This issuance has financed a long-term sale and leaseback transaction with Glasgow City Council on certain properties owned by the council throughout the city,” said Assured Guaranty UK.

“This is Glasgow City Council’s second sale and leaseback transaction guaranteed by AGUK, after its £195 million private placement issuance in 2019.

“The 29-year fixed-rate fully amortising bond was issued on 20 February 2023 and privately placed in the capital markets. As a result of the financial guarantee provided by AGUK, the bonds are rated AA by S&P Global Ratings.”

Dominic Nathan, Senior Managing Director, AGUK, commented: “After the first successful transaction in 2019, this is our second opportunity to work with Glasgow City Council on a transaction that utilises Assured Guaranty’s financial guarantee to support a long-term funding solution, highlighting the significant benefits of a longstanding partnership with Assured Guaranty.

“We believe other UK councils could replicate the success of this transaction with our long-term and cost-effective wrap.”

AGUK CEO Nick Proud said: “The closing of this transaction with Glasgow City Council demonstrates how our versatile guarantee can be used to provide a tailored solution for our client repeatedly.

“We support our clients by understanding their needs and developing appropriate applications of our guarantees to deliver cost-efficient financing solutions that are valued by investors, who are attracted by the high rating our guarantee adds to long-term financings.”

AGUK guarantees timely payment of scheduled principal and interest to bondholders, throughout the life of the bonds, in accordance with the terms of its financial guarantee.

AGUK’s advisers on the transaction were Shepherd and Wedderburn LLP (Legal), JLL (Valuation) and Willis Limited (Insurance).