10 June 2014
Carey Olsen advises the States of Jersey on debut bond issue
Lawyers from Carey Olsen's structured finance team have acted alongside global law firm Clifford Chance LLP for the States of Jersey on the issuance of £250 million 3.75% Notes due 2054 the proceeds of which are intended to be used to invest in an extensive programme of social housing in Jersey over the next 10 years.
The law firms were appointed following a competitive open tender and interview process which also saw Barclays Bank PLC, HSBC Bank plc and the Royal Bank of Scotland plc being appointed as joint lead managers. International law firm Allen & Overy LLP acted as lead counsel to the joint lead managers.
The Notes, which have been assigned a rating of AA+ by Standard & Poor's Credit Market Services Europe Limited, have been listed on the Channel Islands Securities Exchange as the principal exchange with Carey Olsen Corporate Finance Limited acting as listing sponsor.
The transaction represents a new approach to financing on behalf of the States of Jersey which has historically funded the majority of its capital investment activity out of taxation revenues. In the 2014 budget the island's government decided to take advantage of Jersey's excellent credit rating and, in this instance, to borrow funds at historically low interest rates.
The Carey Olsen team was led by partner Simon Marks and included senior associate Joanne Worrad and associate Ashley Gribben who worked alongside Clifford Chance LLP, Laura Rowley, Treasurer of the States, and her team, the team at the Law Officers department, and the Minister for Treasury and Resources. Ernst & Young acted as independent financial advisers to the States of Jersey.
Partner Simon Marks, Carey Olsen's head of structured finance, said:
"Carey Olsen has a team which is dedicated to bond issues and other debt capital markets work. We were therefore very well placed to advise the States of Jersey as a debut bond issuer and we are also very pleased that the deal appears to have been so well received by the market."