Andium Homes: Housing Development Fund: Approval of Loan

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A decision made 29 September 2017:

Decision Reference: MD-TR-2017-0123
Decision Summary Title:	Housing Development Fund - Andium Homes Ltd: Approval of loan – Various – Enabling Works		Date of Decision Summary:	27th September 2017
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:	Housing Development Fund - Andium Homes Ltd: Approval of loan – Various – Enabling Works		Date of Written Report:	27th September 2017
Written Report Author:	Head of Shareholder Relations		Written Report : Public or Exempt?	Exempt – FOI Art. 33
Subject: Housing Development Fund - Andium Homes Ltd: Approval of a loan in the sum of £16,966,000 (Various – Enabling Works).
Decision(s): The Minister for Treasury and Resources:- approved the loan of £16,966,000 at an interest rate of 5.0% to Andium Homes Ltd, repayable no later than 31st December 2018 and on the basis of the Loan Schedule, attached as Appendix 1 to the accompanying written report. authorised the Treasurer of the States to sign the Loan Agreement in accordance with this Ministerial Decision. This loan to be met from the £207 million allocated from the Bond issue and earmarked for lending to Andium Homes Ltd.
Reason(s) for decision: The loan is required to enable Andium Homes to continue to progress various schemes, in terms of e.g. demolition and enabling works, prior to entering into the main contract works for each of these schemes, at which point a loan request for each specific scheme would be made. The growth of Andium’s capital programme and time needed to progress the schemes through the planning process has required Andium to cover a significant amount of these costs through its general cash flow. To provide Andium with the flexibility to efficiently progress projects, and meet the requirements of their own treasury policy, they consider it advantageous to seek short term loan funding to cover these costs. This is in support of P.33/2013: The Reform of Social Housing. The States in approving P.129/2014 on 22nd September 2014 agreed that the Minister could lend under Article 3(3)(b) of the Public Finances Law, 2005, to Andium Homes Ltd.
Resource Implications: There are no additional resource implications, financial or manpower as a result of this decision.
Action required: The Head of Decision Support to notify the Head of Shareholder Relations once this decision has been approved. The Head of Shareholder Relations to produce the necessary loan agreement, based on the Model Loan Agreement approved in MD-TR-2014-0084 for signing by the Treasurer of the States. The Head of Shareholder Relations to advise the Chief Operating Officer and Finance Director of Andium Homes Ltd that the Loan request has been approved and that the Loan agreement is being produced.
Signature:		Position: Connetable J M Refault, Assistant Minister for Treasury and Resources
Date Signed:		Date of Decision: