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RESOLVED:
 
1. 
To approve the launch of the Hackney Community
Municipal Investment - Green Loan in May 2024 to finance green
initiatives.
 
2. 
To approve the conditions of the first Hackney
Community Municipal Investment launch as set out at paragraph 9.3.5
and to delegate authority to the Interim Group Director Finance, in
consultation with the Acting Director, Legal, Democratic and
Electoral Services, to enter into any agreements that may be
necessary.
 
REASONS FOR DECISION
 
Hackney CMI Green Loan will enable the Council
to finance some of its green initiatives, thereby supporting the
transition to a low-carbon economy and positively impacting the
environment. The CMI benefits from Individual Savings Account
status with its associated tax advantages to smaller investors.
 
The Abundance platform provides access to a
community of ethical investors keen to support environmentally
friendly projects.  By financing
environmentally friendly initiatives with a CMI Green Loan, the
Council can engage and involve residents in local projects which
will contribute to achieving our net zero targets.  The interest rate on the CMI Green Loan will be
lower than the borrowing rate for PWLB.
 
DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND
REJECTED
 
The Council could choose an alternative source
of borrowing to raise £1m to fund the projects in line with
our Treasury Management Strategy, such as borrowing through the
PWLB.  This would result in the projects
being funded but the financial impact to the Council would
potentially be a slightly higher cost of borrowing as the CMI
should match or undercut the PWLB certainty rate.  In addition, this would test the opportunity to
raise funding from a wider range of sources.  This CMI is the Council’s chance to engage
in a new way of funding work to reduce carbon emissions and
increase resident participation.
 
Council aims to test a range of approaches to
increase funding available for wider climate-related projects.