Revolving Credit Facility: Transition from London InterBank Offered Rate

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A decision made 11 June 2021:

Decision Reference: MD-TR-2021-0072
Decision Summary Title:	Revolving Credit Facility – Transition from LIBOR		Date of Decision Summary:	9th June 2021
Decision Summary Author:	Director of Treasury and Investment Management		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Revolving Credit Facility – Transition from LIBOR to a Risk Free Rate		Date of Written Report:	9th June 2021
Written Report Author:	Director of Treasury and Investment Management		Written Report : Public or Exempt?	Exempt Article 26
Subject: Revolving Credit Facility – Transition from LIBOR to a Risk Free Rate
Decision(s): The Minister for Treasury and Resources decided to:- Transition the Revolving Credit Facility Agreement from LIBOR to SONIA and enter into an amendment and restatement agreement relating to the Revolving Credit Facility Agreement (the "ARA") on behalf of the States of Jersey pursuant to which, among other things, LIBOR/SONIA amendments to the Revolving Credit Agreement would be effected. Sign the Authorised Signatory's Certificate in connection with the ARA. Authorise: (a) the Group Director, Strategic Finance of the Treasury & Exchequer Department of the States of Jersey; and (b) the Director, Treasury and Investment Management of the Treasury & Exchequer Department of the States of Jersey, to sign: a) the ARA; and b) all other documents required (i) to enter into the ARA; (ii) under or in connection with the ARA; and/or (iii) to effect the amendment and restatement of the Revolving Credit Facility Agreement (other than the Authorised Signatory’s Certificate).
Reason(s) for Decision: The main financial regulator in the UK, the Financial Conduct Authority, has announced that banks should prepare for LIBOR rates to no longer exist post 2021. As part of the process for agreeing the extension of the Revolving Credit Facility the lending banks have requested that the supporting documentation is transitioned away from LIBOR to the new Risk Free Rates. Under Article 28 of the States of Jersey Law 2005 a Minister may delegate, wholly or partly, functions conferred upon or vested in the Minister under that Law, any other enactment or any enactment of the United Kingdom having effect in Jersey, to one of his or her Assistant Ministers or an "officer". The Minister wishes to delegate authority to sign the ARA and all other documentation relating to the ARA (other than the Authorised Signatory’s Certificate) to: (a) the Group Director, Strategic Finance of the Treasury & Exchequer Department of the States of Jersey; and (b) the Director, Treasury and Investment Management of the Treasury & Exchequer Department of the States of Jersey, each of whom is an "officer" for the purposes of Article 28 of the States of Jersey Law 2005. Article 30(1) of the States of Jersey Law 2005 requires a Minister who delegates functions under Article 28 of that Law to present to the States a report specifying the functions delegated and to whom. Article 30(2) of the States of Jersey Law 2005 recognises that a Minister is not required to present a report under Article 30(1) of that Law where the delegation is so immediate and of such brief duration that it is not practicable to present the report before the delegation ends. As the delegation authorised by this Ministerial Decision, and to be made under Article 28 of the States of Jersey Law 2005, is solely for the purpose of signing the documents referenced above and it is not practicable to present the report before the delegation ends, the Minister, in accordance with Article 30(2) of the States of Jersey Law 2005, is not required to present a report under Article 30(1) of that Law in respect of such delegation.
Resource Implications: The administration of the Revolving Credit Facility is part of the day-to-day activity of the Treasury & Exchequer. Legal counsel and independent advisors have been engaged to complete the process, budget for their costs is included within the Government Plan 2021-24.
Action required: Head of Financial Governance to inform the Director of Treasury and Investment Management that this decision has been signed. The ARA and accompanying documents to be signed by: (a) the Group Director, Strategic Finance of the Treasury & Exchequer Department of the States of Jersey; and (b) the Director, Treasury and Investment Management of the Treasury & Exchequer Department of the States of Jersey.
Signature:		Position: Deputy S J Pinel, Minister for Treasury and Resources
Date Signed:		Date of Decision: