The UK Municipal Bonds Agency, founded in 2014 to kickstart a new local government debt market, has issued a £250m bond – only its second ever, after being beset by delays.

The agency, which owned by local councils and the Local Government Association, helps local councils to finance their investment in projects including infrastructure and housing. The agency’s issuance comes as the Covid-19 pandemic has dented local councils’ funding amid the nationwide lockdown, with mayors warning that they are at risk of going bust.