LOBO Loan Authorisation and Governance
Case reference FOI2026/00154
Received 22 January 2026
Published 13 February 2026
Request
Request for Information Regarding LOBO Loan Authorisation and Governance
Under the Freedom of Information Act 2000, I am writing to request the following information regarding the LOBO (Lender Option Borrower Option) loans currently held by Herefordshire Council, specifically:
1. Decision-making and Authorisation
a) Who within Herefordshire Council proposed and authorised the entry into the two LOBO loan agreements totalling £12 million?
b) What were the stated purposes or projects for which these LOBO loans were originally raised?
2. Governance and Democratic Oversight
a) Was the decision to enter into these LOBO loans subject to a vote by Full Council?
b) If so, please provide the minutes of the meeting, including:
i) The date of the meeting;
ii) The motion text;
iii) The voting record;
iv) Any amendments or objections raised.
v) If the decision was taken under executive powers or delegated authority, please specify:
vi) The relevant constitutional or legal basis for that delegation;
vii) The identity and role of the officer or executive making the final decision.
3. Public Notification and Consultation
a) Was any form of public notice, consultation, or communication issued to inform local taxpayers of the Council’s intention to enter into these long-term financial agreements?
b) If yes, please provide:
i) The dates of such notices or communications;
ii) Copies of the public announcements or records.
4. Loan Terms and Duration
a) Please confirm:
i) The exact date of inception for each LOBO loan;
ii) The original term and maturity date;
iii) Whether any options to raise the interest rate have been exercised by the lenders;
iv) Whether Herefordshire Council has ever attempted or negotiated early exit terms.
Response
Request for Information Regarding LOBO Loan Authorisation and Governance
Under the Freedom of Information Act 2000, I am writing to request the following information regarding the LOBO (Lender Option Borrower Option) loans currently held by Herefordshire Council, specifically:
1. Decision-making and Authorisation
a) Who within Herefordshire Council proposed and authorised the entry into the two LOBO loan agreements totalling £12 million?
Answer: The Service Area have advised the staff members involved were authorised in line with the Council’s Financial Procedure Rules:
Danske £6m: Principal Financial Policy Manager and County Treasurer
Dexia £6m: County Treasurer
b) What were the stated purposes or projects for which these LOBO loans were originally raised?
Answer: To support the approved capital programme expenditure.
2. Governance and Democratic Oversight
a) Was the decision to enter into these LOBO loans subject to a vote by Full Council?
Answer: The Service Area have advised that Full Council approve the Capital programme and the Treasury Management Strategy annually. This will include the capital financing requirements and the permitted borrowing facilities.
b) If so, please provide the minutes of the meeting, including:
i) The date of the meeting;
ii) The motion text;
iii) The voting record;
iv) Any amendments or objections raised.
v) If the decision was taken under executive powers or delegated authority, please specify:
vi) The relevant constitutional or legal basis for that delegation;
vii) The identity and role of the officer or executive making the final decision.
Answer: The information for question 2b i)-vii) is publically available on our council website and can be viewed via the following link:
https://councillors.herefordshire.gov.uk/ieListDocuments.aspx?CId=291&MId=1002&Ver=4
As such we consider this information to be exempt under Section 21 of the Freedom of Information Act 2000 because it is reasonably accessible to you via other means. Please take this letter as a refusal notice under S17 of the Act.
3. Public Notification and Consultation
a) Was any form of public notice, consultation, or communication issued to inform local taxpayers of the Council’s intention to enter into these long-term financial agreements?
Answer: This information is not held and is therefore not known.
b) If yes, please provide:
i) The dates of such notices or communications;
Answer: N/A
ii) Copies of the public announcements or records.
Answer: N/A
4. Loan Terms and Duration
a) Please confirm:
i) The exact date of inception for each LOBO loan;
Answer: The Service Area have advised:
Danske: Date of advance was 24.11.2004.
Dexia: Date of advance was 04.02.2004.
ii) The original term and maturity date;
Answer: The Service Area have advised:
Danske: 50-year term, maturity 24.11.2054
Dexia: 50-year term, maturity 04.02.2054
iii) Whether any options to raise the interest rate have been exercised by the lenders;
Answer: The Service Area have advised no; other than the agreed rate change, as per the original contract.
Danske: Interest rate 1.60% 24.11.2004-24.11.2006, then 4.5% until maturity.
Dexia: Interest rate 2.85% until 04.02.2006, then 4.5% until maturity.
iv) Whether Herefordshire Council has ever attempted or negotiated early exit terms.
Answer: No
Documents
This is Herefordshire Council's response to a freedom of information (FOI) or environmental information regulations (EIR) request.
You can browse our other responses or make a new FOI request.