Clifford Chance

Clifford Chance, eppf and Centrus advise on Sutton's £250 million bond. Issuance platform enables easier bond market access

The London Borough of Sutton has priced a debut £250 million 35 year bond with a coupon of 1.732%, using a new financing platform that provides borrowers with a quicker, cheaper way to access the debt capital markets. An initial £100m has been issued with £150m retained for future sale. Sutton will use the proceeds to refinance short term debt and finance projects within their approved capital programme.

The transaction was arranged by financial services advisors Centrus, working with bond issuance platform eppf and international law firm Clifford Chance to design and deliver a new financing structure which can be used by local authorities, corporates and governments. London Borough of Sutton was advised by Link Group (Link), which has an existing partnership with Centrus to provide debt capital markets solutions. RBC was sole bookrunner.

The bonds, which will be listed on the International Securities Market of the London Stock Exchange, have a Moody’s rating of Aa3 (stable) in line with the UK Sovereign rating. The bonds were issued via the European primary placement facility (eppf S.A.) acting for its compartment. London Borough of Sutton. eppf is an established, regulated Luxembourg limited liability company whose principal activities are the issue of securities via compartments within the limits of Luxembourg law. eppf is set up to provide borrowers including local authorities, corporates and governments with an innovative, simple and cost-efficient route to accessing the debt capital markets.

Paul Deakins, Debt Capital Markets partner at Clifford Chance, commented: "We are delighted to have supported Centrus, eppf and RBC deliver an innovative and successful debut transaction for the London Borough of Sutton. The use of eppf shows how legal technology can help facilitate the issuance process and provide an efficient and cost-effective approach."

The Arranger and the Bookrunner were advised by Clifford Chance, eppf by Simmons & Simmons Luxembourg and London Borough of Sutton was advised by Allen & Overy.