17 December 2014

Carey Olsen’s debt capital markets expertise brought to bear on the Guernsey governments first bond

Carey Olsen has worked alongside Clifford Chance, Ernst & Young and the Law Officers of the Crown to advise the States of Guernsey on its debut bond issue and listing on the Channel Island Securities Exchange. Carey Olsen Corporate Finance Limited acted as listing sponsor.

The deal follows Carey Olsen's role in advising the States of Jersey in June on the issuance of its own £250 million bond with a coupon of 3.75%, due in 2054, the proceeds of which are intended for investment in an extensive social housing programme.

In Guernsey the £330 million bond, with a final maturity of 2046 and a coupon of 3.375%, closed on 12 December. Its net proceeds are set to be used to consolidate existing debt provided for, or guaranteed by, the States of Guernsey.

The Carey Olsen's debt capital markets team has developed a strong reputation for successfully handling complex and pioneering financings for public as well as private issuers and its expertise and market share as a listing sponsor makes it ideally placed to deliver a seamless service.

Carey Olsen’s team was led by partners Tom Carey, on the Guernsey law aspects of the transaction, and Simon Marks on the listing aspects of the transaction. They were assisted by senior associates Joanne Worrad, Adrian Sarchet, Laila Arstall and associate Ashley Gribben.

Advocate Carey said: "The deal was fascinating to work on being politically and financially ground-breaking for a government that has historically funded capital investment through taxation revenues.

“The excellent credit rating of AA+ that the States received from Standard & Poors (S&P) and the institutional appetite for the credit enabled the States of Guernsey to achieve the lowest ever coupon for a long term, fixed rate Sterling bond from any issuer without a UK Government guarantee. This is fantastic news for Guernsey."