Ports of Jersey Limited: Debt Financing Arrangement: Approval

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A decision made 21 June 2019:

Decision Reference: MD-TR-2019-0054
Decision Summary Title:	Ports of Jersey Ltd – Request for consent to enter into Debt Financing arrangement.		Date of Decision Summary:	12th June 2019
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:	Ports of Jersey Ltd – Request for consent to enter into Debt Financing arrangement.		Date of Written Report:	12th June 2019
Written Report Author:	Head of Shareholder Relations		Written Report : Public or Exempt?	Exempt Articles 26 and 33 Supplementary documents are also exempt.
Subject: Ports of Jersey Ltd (“PoJL”) – Request for consent to enter into Debt Financing arrangement.
Decision(s): The Minister for Treasury and Resources decided to:- approve PoJL entering into debt financing arrangements of up to £40 million, but on the basis that these debt financing arrangements are now developed in conjunction with Treasury and Exchequer, recognizing the recommendation by EY to PoJL, regarding the cheapest funding option available and the Government’s current position on Infrastructure borrowing; and note (as opposed to the request to endorse) PoJL’s target to maintain cash reserves of an average of £15 million over each Strategic Business Plan period with a targeted minimum balance of £10 million. The approval to be subject to the following conditions:- PoJL to fully brief the Minister on the final arrangements to be put in place, before they are formally agreed. No guarantee (explicit or implicit) nor letter of comfort to be provided by the States of Jersey.
Reason(s) for Decision: Section 13.1 of the Memorandum of Understanding between the Minister and PoJL requires that PoJL seek consent of the Minister before it, “Borrows any material sum ….”
Resource Implications: There are no resource implications for the Government of Jersey arising from this decision, other than as set out in the attached Report.
Action required: Head of Financial Governance to inform the Head of Shareholder Relations that this decision has been approved.
Signature:		Position: Deputy S J Pinel, Minister for Treasury and Resources
Date Signed:		Date of Decision: