Hopes for transport boost with bond sales

Mayor Ken Livingstone was today launching a series of presentations in the City, aimed at persuading financial institutions to buy the first of London's bond issues.

Backed by the Treasury, Mr Livingstone will be extolling his Transport for London organisation in an attempt to raise £2.3 billion over the next few years.

The money will finance transport improvements such as the East London line extension, upgrades to the Docklands Light Railway, the Thames Gateway bridge and the extension of the Metropolitan line to Watford Junction.

The first tranche of the TfL Bond, available for marketing from Friday, hopes to raise £200million.

It is being seen as a " benchmark bond" to establish TfL's name in the City.

Mr Livingstone said: "This is a huge step forward. I have argued for some time that a key to reversing the decades of under-investment in London's transport infrastructure was to sell bonds.

"Through financing from private markets, we can progress a wider range of projects more quickly and at the lowest cost for the benefit of Londoners and commuters."