The Government of Jersey (rated AA- stable outlook by S&P) has successfully priced a £500m, 30 year bond at a coupon of 2.875%, which will be applied to general government purposes, specifically the refinancing of Jersey’s public sector past service pension liabilities.
HSBC was Joint Active Bookrunner on the transaction and also acted as Documentation Bank.
Aline Ayotte (pictured), Head of Commercial Banking for HSBC in the Channel Islands and Isle of Man, said: “At HSBC, in partnership with our clients, we’re using our expertise, size and global reach to help governments, companies and financial institutions achieve their funding ambitions. Working with the Government of Jersey is an excellent example of how we can help high quality issuers to achieve a long-term, cost effective funding solution.”
Commenting on the deal, the Minister for Treasury and Resources, Deputy Susie Pinel, said: “This has been a successful outcome to our first bond issuance for eight years. The long-standing partnership between Jersey and the United Kingdom, combined with our strong and stable credit rating, has played a key role in the successful issuance of the bond.”
Dominic Kerr, Managing Director, HSBC Global Banking and Markets said: “The success of this transaction is a reflection of investor confidence and strong interest in the Government of Jersey as a counterparty of the highest quality. We’re continuing to help a wide range of issuers to secure long-term bond financing at competitive rates despite the challenging economic and geopolitical backdrop that we’ve seen so far in 2022”
