Jersey International Finance Centre: Building 5: Shareholder approval for States of Jersey Development Company to enter into a construction contract and its funding

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A decision made 25 October 2016:

Decision Reference: MD-TR-2016-0089
Decision Summary Title:	SoJDC – Jersey International Finance Centre Building 5 – approvals relating to construction and funding.		Date of Decision Summary:	24th October 2016
Decision Summary Author:	Head of Shareholder Relations		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title:	SoJDC – Jersey International Finance Centre Building 5 – approvals relating to construction and funding.		Date of Written Report:	24th October 2016
Written Report Author:	Head of Shareholder Relations		Written Report : Public or Exempt?	Exempt: Article 33
Subject: Shareholder approval for the States of Jersey Development Company (“SoJDC”) to enter into a construction contract and its funding, for No.5 Jersey International Finance Centre (“JIFC”) (incl. Public Square).
Decision(s): The Assistant Minister decided the following in accordance with Article 27 of the Company’s Articles of association and in accordance with 13.1 and 17.1 of SoJDC’s Memorandum of Understanding (“MoU”). To authorise SoJDC to:- enter into a Loan Facilities agreement with HSBC, for No.5 JIFC. Allocate the Plot of No.3 JIFC and Esplanade Quarter Phase 2 site into separate SPVs to allow them, along with other certain plots, to act as security for the loan facilities. enter into a construction contracts for Building No.5 and the Public Square. The above approvals are subject to:- formal confirmation being received by the Assistant Minister from the Board of SoJDC, prior to the funding agreement and the construction contract(s) being signed by the company, that:- The level of legally binding pre-lets required by P.73/2010 and the MoU, in order for the value of the completed building to be in excess of the costs of the construction, has been met. The cost of the construction contract(s) do not exceed the agreed amount. There are no significant changes to the draft Loan Facilities agreement to be signed and that the total has not exceeded that agreed. The other requirements of P.73/2010 and the MoU relating to the project has been met. This confirmation should be in the form of a formal Board Minute or letter signed by the Managing Director.
Reason(s) for Decision: The Minister’s approval for SoJDC to enter into external financing and charge its property is in accordance with Article 27 of the Company’s Articles of Association and in accordance with MoU 13.1 and 17.1
Resource Implications: There are no financial consequences for the States of Jersey.
Action required: In accordance with P.73/2010, Section 12 of the report, this decision will not take effect for 15 days from the date of the signing.
Signature:		Position: Connetable J M Refault, Assistant Minister for Treasury and Resources
Date Signed:		Date of Decision: