Canal & River Trust borrow £100 millions

Published: Monday, 29 January 2018

WITH funds at an exceeding low level Canal & River Trust has resorted to borrowing £100 millions in the form of bonds.

Issuing bonds is a form of borrowing money to give medium or long-term security, but at a cost as it commits to specific repayment dates, at fixed or variable interest.

Borrowed this month

The Trust borrowed £100 millions this month (January) and it is understood it intends to borrow a further £50 millions later in the year by a further issue of bonds.  It blames the reduction of income from its assets coupled with a rise in pension deficit.

There was no Press Release of this move to secure funds, that took place at a Defra Grant Review Meeting with the decision made by the Trust's hierarchy.

The repayment dates or rates of interest were not released, but can only be seen as an expensive stop-gap to its ever declining funds