PWLB explained
About this course
Standard, Certainty, HRA and Local Infrastructure rates, who can borrow, gilt+spread mechanics, a live PWLB rate calculator, and the four daily PWLBtoday bulletins.
What you'll learn
- 200 years of PWLB
- Who can borrow & how
- The four PWLB rate types
- Repayment structures
- How rates are set
- Premature repayment
- Strategic borrowing
- Premature repayment in depth
- Practical operations
- The daily updates
Part of these pathways
Related courses
- PWLB repayment structures
- PWLB break costs — mechanics & live calculator
- Debt restructuring
- Strategic PWLB borrowing
- Reading the PWLBpredict
- Reading PWLB activity
Common questions
What is Annuity loan?
Repayment structure where the borrower makes level total payments. Principal repayment is back-loaded; interest charge is front-loaded.
What is Basis points (bps)?
1bps = 0.01%. Rate differences are usually quoted in bps because they're typically small (e.g. the 20bps gap between Standard and Certainty rates).
What is CAA?
Credit Approval Authorisation. Annual confirmation a council provides to the DMO to remain eligible for the Certainty Rate.
What is Capitalisation Certainty Rate?
Capitalisation-direction equivalent of the Certainty Rate, currently gilts + 180bps.
What is Capitalisation Standard Rate?
PWLB rate for councils operating under a statutory capitalisation direction (Exceptional Financial Support), currently gilts + 200bps — i.e. 100bps premium over the normal Standard Rate to reflect heightened credit concern.
What is Certainty Rate?
PWLB's discounted rate, currently gilts + 80bps (20bps below the Standard Rate). Available to councils that opt in annually and provide lending forecasts to the DMO.