By Marcus Leach

A £600 million bond issue that will fund the Crossrail project has been secured according to Mayor of London Boris Johnson.

The deal will save London businesses in the region of £65 million in tax according to Mr Johnson.

Crossrail will connect Maidenhead in Berkshire with Shenfield in Essex, passing through the West End and Canary Wharf.

The deal is something of a landmark as it is the first deal of its kind from a local authority in almost twenty years.

The bonds will be issued in association with Lloyds Bank Corporate Markets.

"Crossrail is going to transform our city but it must be cost-effective, especially for London's businesses," Mr Johnson said.

"This is a great example of the public and private sectors coming together and delivering an innovative solution to bear down on borrowing costs.

"I hope this is a model local government can develop for other important improvements we make to the capital and beyond."

The co-head of Lloyds Bank Corporate Markets Andrew Geczy said just how significant the deal was.

"It is more than 17 years since a mainstream local authority has secured finance via the public markets, so this transaction is significant as well as innovative," he said.

"We are delighted to have assisted the GLA to access the public markets and we fully expect other local authorities to follow their lead."

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