Hounslow Council has successfully raised £1 million through its first Community Municipal Investment (CMI), offering residents a chance to invest directly in local green projects. The CMI has an interest rate of 4.100% and a loan term of 5 years.
The Audit and Governance Committee received an update on the treasury management activity for the period of 1 April 2025 to 30 September 2025, which included the CMI, at their meeting on Tuesday, 4 November 2025. According to the Treasury Management Mid-Year Report 2025-26, the first CMI tranche successfully raised £1m between June and September 2025.
CMIs allow residents to invest in projects such as renewable energy and energy efficiency schemes. The council launched the CMI in line with the Greener Hounslow initiative, enabling residents to invest directly in green projects such as renewable energy and energy efficiency schemes. The £1 million raised will be allocated across a portfolio of green projects, including renewable energy installations and energy efficiency schemes. These projects will be reviewed and approved by Hounslow's Climate Investment Board to ensure robust governance and alignment with strategic priorities. The council partnered with Abundance Investment and the Green Finance Institute to deliver the CMI, leveraging the Abundance platform to attract local investment while enhancing transparency and community ownership of its financial and environmental strategies.
The Lampton Group Update September 2025 was included as an appendix to the Treasury Management Mid-Year Report.
The Interest Rate Forecast and Economic Update September 2025 was also included as an appendix to the Treasury Management Mid-Year Report.
According to the Treasury Management Mid-Year Report, total borrowing reduced from £608.1m to £594.8m, a net decrease of £13.3m. Treasury investments decreased from £66.2m to £49.6m, a net decrease of £16.6m. The shift reflects the drawdown of treasury investments to support operational and capital activities. The Council continued to operate an underborrowed position, using internal cash resources to temporarily fund its capital programme, considered prudent in a climate where short-term investment rates have occasionally matched or exceeded long-term borrowing costs.
The council holds £34.5m in Lender Option, Borrower Option (LOBO) loans, which include embedded options for the lender to propose changes to the loan terms at specified intervals. If a lender exercises this option, the council has the right to repay the loan without penalty. The next LOBO option period is scheduled for February 2026, involving a £10m tranche.
