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Andium Homes Limited: Request for Borrowing Consent

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

  • demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision

  • providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made on 28 February 2020

Decision Reference: MD-TR-2020-0014

Decision Summary Title:

Andium Homes Ltd – Request for Borrowing Consent.

Date of Decision Summary:

20th February 2020

Decision Summary Author:

Head of Shareholder Relations

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

N/A

Written Report

Title:

Andium Homes Ltd – Request for Borrowing Consent.

Date of Written Report:

20th February 2020

Written Report Author:

Head of Shareholder Relations

Written Report :

Public or Exempt?

Exempt

Articles 26 and 33

Subject:

Andium Homes Ltd (“Andium”) – Request for Borrowing Consent.

Decision(s): 

The Assistant Minister for Treasury and Resources decided to:-

  • provide consent under Section 13.1 of the Memorandum of Understanding (“MoU”) between Andium and the Minister, for Andium to enter into a Rolling Credit Facility (“RCF”) of £150 million for a 5 year initial period.
  • agree to the variation of the existing Model Loan Agreements to halt all capital repayments due until after this RCF is repaid and maintain the Housing Development Fund (HDF) at peak capacity.
  • authorise the Treasurer of the States to sign the variation to the Model Loan Agreement in accordance with this Ministerial Decision.

The approval to be subject to the following conditions:-

 

  • In order to ensure that the Housing Development Fund continues to operate in accordance with the rules as originally approved by the States in the Budget 2015, Andium will continue to seek the Assistant Minister’s approval for all Agreed Projects, including their funding mechanism, prior to commencement.

 

  • Andium will continue to comply with the requirements of Section 13.1.7 of the Memorandum of Understanding, for all projects not previously approved by the Guarantor, as part of a Strategic Business Plan.

 

  • The Assistant Minister to be briefed on the final arrangements to be put in place, before they are formally entered into by Andium Homes Ltd.
  • No guarantee (explicit or implicit) nor letter of comfort to be provided by the States of Jersey. 

 

  • The RCF to be provided solely by Jersey based banks registered with the Jersey Financial Services Commission and to be syndicated between a minimum of two finance providers.

 

Reason(s) for Decision:

Section 13.1 and specifically 13.1.6 of the Memorandum of Understanding between the Minister and Andium requires that Andium seek consent of the Guarantor before it “Borrows any material sum ….”

 

Resource Implications: 

There are no resource implications for the Government of Jersey arising from this decision, other than as set out in the attached Report. All finance costs in relation to the RCF will be borne by Andium.

Action required:

Head of Financial Governance to inform the Head of Shareholder Relations that this decision has been approved.

Signature:

 

 

Position:  Deputy L. Ash, Assistant Minister for Treasury and Resources

Date Signed:

 

Date of Decision:

 

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