Municipal Budgets

Short-term Public Sector Loan

Use our short-term public sector loans to manage fluctuations in income and expenditure flexibly. We help you to meet your liquidity needs with short-term forward rate agreement and payment stream alignment. We can also provide you with similar public sector loans with a longer term extending beyond the end of the budget year.

Municipal Loan

We match municipal loans to your specific investment plans, paying particular attention to your budgetary requirements and the prevailing and anticipated conditions in the money and capital markets. We optimise your interest rate position to minimise costs and present you with strategic advice on the opportunities for easing the strain on your budget. For your flexibility as well as for your ability to plan with confidence we can offer you fixed interest, variable interest and hybrid alternatives.

Forward Loan

Take advantage of the opportunities offered by medium-term money and capital market trends. Secure the interest rate and liquidity you want for your financing right now, and let us help you decide on interest hedges and identify the opportunities your market expectations suggest. Our mathematical models and forward calculations will help you reach an informed and balanced opinion on how to proceed.

Forward-Plus Loan

Our Forward-Plus loan provides an alternative to derivative-based interest management measures. It enables you to reduce today your interest charges from loans whose interest rate is due to be changed at a point in the future and thereby secure the current rate for the future. You receive a corresponding interest subsidy from us in the form of an interest equalisation payment on the remaining due dates for interest payment for your existing loan up to the point at which the interest rate changes. This does not increase the value of the loan, so you in effect pay the new, lower interest rate from today. Your loan is then repaid to the original lender punctually when the interest rate changes.

Roll-over Loan

A roll-over loan offers you a wealth of credit structuring alternatives for short-term financing needs and the long-term financing of your capital budgets: whether you want options to ease interest pressures or a basic loan for related interest hedging instruments, Helaba offers you all possible flexibility in design. We explore your wishes and requirements and advise you about opportunities and alternatives.

Municipal Loan with Special Terms

Do you want to make gains from interest rate variations? Do you need a fixed calculation basis for the future? Do you want to exploit the yield curve?

If so, let us structure your loan. Helaba offers innovative municipal loans including

• step-down loans,
• step-up loans,
• optioned loans with borrower’s early repayment privilege and
• variable initial financing with fixed forward interest.

Foreign Currency Loan

Differences in interest rates between the euro and foreign currencies represent an interesting opportunity for municipal as well as private sector financial managers. If you take out a foreign currency loan, you have the chance of sharing in the benefits of a shift in exchange rates in addition to the attractive savings to be made on interest. To manage your risk we advise you on appropriate hedging instruments and employ them effectively. Break-even calculations and professional market research complete our offering.

Investment Support

We give you access to all of the national and international development programmes available in the market to help you optimise your financing. Development funds tend most commonly to be available for:

• road building (including bridges),
• transport measures of relevance to the environment and local public transport,
• urban regeneration and improvement of the residential environment (cycle paths, footpaths and pedestrian zones, play areas, parks, surface and underground parking facilities),
• educational establishments (schools, kindergartens and training centres),
• fire prevention,
• healthcare (hospitals, support for older people and people with disabilities),
• renovation of protected historic buildings and structures,
• wastewater treatment and solid waste disposal measures, and
• energy and resource supply measures (water, electricity, gas, district heating).

Municipal Loans for Public Sector Companies

EU rules on the promotion of economically significant grant finance leave scope to provide low-interest loans to public sector companies by using a municipal guarantee.