Guernsey's Government has completed the £330 million bond issue for its inaugural States of Guernsey Bond.

The issue was over-subscribed, showing a strong level of investor interest, which enabled the Guernsey Government to secure a fixed rate of interest of 3.375 per cent per year, with a final maturity of December 2046.

This represents the lowest ever coupon for a long-term fixed rate sterling bond from any issuer without a UK Government guarantee.

The States of Guernsey had been working with external partners EY who acted as independent financial advisers; Clifford Chance acting as international counsel, and Carey Olsen as Guernsey counsel who worked alongside lawyers from the Law Officers of the Crown in preparing for the debut bond issuance.

At the beginning of November, the Island's Treasury and Resources Department appointed Barclays Bank, Deutsche Bank AG and RBC Capital Markets to act as joint lead managers for the bond issuance. Allen & Overy were appointed as international counsel and Mourant Ozannes as Guernsey counsel to the joint lead managers.

The net proceeds of the bond will be applied primarily to consolidate existing debt which is currently either directly provided or guaranteed by the States of Guernsey.

Treasury and Resources Minister Gavin St Pier said: "The bond issuance is not about raising money to spend on public services. It is about refinancing more cost-effectively our States-related trading entities, all of which have income streams to support their own borrowings. It will help us make sure our assets work even better for us, and ensure that the borrowing we have is consolidated in a way that gets a better deal for the island's taxpayers."

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