Details of LOBO loan borrowing

The request was successful.

Dear Portsmouth City Council,

For each of the Lender Option, Borrower option (LOBO) loans Council currently has on its books, and for any historical LOBO loans, please provide:

1) Loan principal
2) Maturity date
3) Trade date when the loan was signed
4) Initial interest rate
5) Current stepped-up interest rate and step-up date,
where applicable
6) Any formula or structure determining the interest rate,
where applicable
7) The first LOBO option call date
8) The LOBO option call frequency
9) Day count convention used for calculation of interest payments
10) The original broker of the loan and fee paid
11) Broker and fee paid for any subsequent restructuring
12) The relevant bank or financial institution(s) which issued each
LOBO loan
13) The name of the Treasury Management Advisor who advised on each
LOBO loan
14) Where available, the original unredacted LOBO loan contracts.

I would very much appreciate it if the answers to parts 1) to 13) were provided in the form of an Excel spreadsheet or CSV file.

Yours faithfully,

Jamie Griffiths

FoI (ITS), Portsmouth City Council

1 Attachment

[1]logo_engInformation Governance, Community & Communication
Service                     

Civic Offices, Guildhall Square, Portsmouth, PO1 2AL

Telephone:    023 9268 8482

 

                                                                                   

Reference: FOI20160078

 

Dear Jamie Griffiths

 

FREEDOM OF INFORMATION ACT 2000 - INFORMATION REQUEST

ACKNOWLEDGEMENT

 

Thank you for your request for information received on 18 January 2016.

 

Your request is being considered and, subject to the points made below,
you will receive the information requested as promptly as possible within
the statutory timescale of 20 working days as defined by the Freedom of
Information Act 2000.

 

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information you require, we will contact you. If this is the case, the 20
day time limit will not commence until your request has been clarified.

The Act defines a number of exemptions that may prevent release of certain
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interest test, the 20 day time limit might be extended. We will inform you
if the time scale has to be extended and if any information is withheld
and of your rights of appeal.

 

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Yours sincerely

 

 

 

 

 

Helen Magri

Corporate Information Governance Officer.

                                                                                                                       

 

 

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Dear FoI (ITS),

The response to my FoI request 'Details of LOBO loan borrowing' is now overdue. Please advise on when I can expect a response.

A full history of the request is available at https://www.whatdotheyknow.com/request/d...

Yours sincerely,

Jamie Griffiths

FoI (ITS), Portsmouth City Council

Dear Mr Griffiths
 
I apologise for the delay in responding to your request. We are currently
waiting for some financial information to be provide to enable to enable
us to complete your request. This information was chased on Friday and I
hope to be able to provide you with a full response in the next few days.
 
Again, I apologise for any inconvenience that this has caused.
 
Regards
 
Rachel-Marie Wilson
Corporate Complaints and FOI Officer
 
Portsmouth City Council
Civic Offices
Floor 3, Core 2-3
Guildhall Square
Portsmouth
PO1 2BG
 
T: 023 9283 4456 or ex 1011
E: [1][Portsmouth City Council request email] 
W: [2]www.portsmouth.gov.uk
 
 
 
 

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FoI (ITS), Portsmouth City Council

2 Attachments

 
Information Governance, Community & Communications Service
Civic Offices, Guildhall Square, Portsmouth, PO1 2AL
Telephone:    023 9268 8482
 
 
Our Ref: FOI2016/78
 
Dear Mr Griffiths
                                   
INFORMATION REQUEST – Details of LOBO Loan Borrowing
 
Thank you for your request for information received on  16th January 2016,
which was considered under the Freedom of Information Act 2000. 
 
In accordance with the Act, Portsmouth City Council confirms it holds in
part the information.
 
 
YOUR REQUEST:
For each of the Lender Option, Borrower option (LOBO) loans Council
currently has on its books, and for any historical LOBO loans, please
provide:

1) Loan principal
2) Maturity date
3) Trade date when the loan was signed
4) Initial interest rate
5) Current stepped-up interest rate and step-up date, where applicable
6) Any formula or structure determining the interest rate, where
applicable
7) The first LOBO option call date
8) The LOBO option call frequency
9) Day count convention used for calculation of interest payments
10) The original broker of the loan and fee paid
11) Broker and fee paid for any subsequent restructuring
12) The relevant bank or financial institution(s) which issued each LOBO
loan
13) The name of the Treasury Management Advisor who advised on each LOBO
loan
14) Where available, the original unredacted LOBO loan contracts.
 
 
OUR RESPONSE:
 
Please find attached the loan agreements which provide answers to the
majority of your questions.  Please note however the Council no longer
holds details of any fee paid to the broker.
 
In accordance with Section 40(2) of the Freedom of Information Act
(Personal Information), all signatures have been removed from the loan
agreements.  We do not believe it would be these individuals's reasonable
expectation for this information to be disclosed into the public domain
and to do so would therefore cause us to breach the First Principle of the
Data Protection Act.
 
In accordance with Section 31 of the Act (Law Enforcement) the bank
details of all parties have also been removed from the agreements.  We
believe disclosure of this information would be likely to increase the
possibility of the accounts being accessed fraudulently. 
 
The public interest in the information has been considered.  There is a
clear public interest in protecting the Authority and third parties from
the impact of Crime and, in this case, we find no factors in favour of
disclosure.  We believe the exemption should therefore be maintained to
withhold the bank details.
 
Under the Re- Use of Public Sector Information Regulations 2005 (SI
2005/1515) the supplied information may not be re-used without obtaining
the permission of Portsmouth City Council.
Portsmouth City Council in complying with their statutory duty under
sections 1 and 11 of the Freedom of Information Act to release the
enclosed information, will not breach the Copyright, Designs and Patents
Act 1988. However, the rights of the copyright holder of the enclosed
information will continue to be protected by the law.  If you wish to use
this information, you may require approval or licence from the copyright
holder.
 
You have the right to appeal against this decision or to complain about
our treatment of your request.  If you wish to do so, please set out in
writing your grounds of complaint and send to the Corporate Information
Governance Officer at Portsmouth City Council, Civic Offices, Guildhall
Square, Portsmouth, Hampshire, PO1 2AL, telephone 023 9268 8482, e-mail
[1][email address].
Should you be dissatisfied with the outcome of the complaints decision you
may wish to follow the Portsmouth City Council’s Compliments and
Complaints procedure which can be found on the Portsmouth City Council
website or by contacting the Civic Offices.
 
Once these processes have been exhausted you have a further right of
appeal to the Information Commissioner at:
 
Further information is also available from the Information Commissioner
at:
Information Commissioner's Office
Wycliffe House
Water Lane
Wilmslow
Cheshire
SK9 5AF
Telephone: 0303 123 1113
[2]www.informationcommissioner.gov.uk
 
Yours sincerely
 
 
 
 
 
 
Helen Magri
Corporate Information Governance Officer
 
Portsmouth City Council
Civic Offices
Guildhall Square
Portsmouth
PO1 2BQ
 
T:  023 9268 8482
E:  [3][email address]
E:  [4][Portsmouth City Council request email]
[5]www.portsmouth.gov.uk
 
 
 
 
 
 
 
 

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sameen left an annotation ()

Thanks Jamie.

Dear FoI (ITS),

Many thanks for your response to my FoI request 'Details of LOBO loan borrowing' (see https://www.whatdotheyknow.com/request/d... )

Unfortunately the response lacks explicit answers to my questions and so I am forced to ask for clarification on a number of points.

1. How many loans are there? Because not all the attached contracts have loan instrument numbers it is impossible to determine whether the council currently has just one loan for £11m outstanding (that has been restructured twice) or two loans for a total of £22m.

2. Who were the treasury management advisors to the Council at the time the LOBO loan(s) was/were taken out (i.e. who advised the Council to take out the loan(s))?

3. What is the current interest rate being paid on each loan?

Yours sincerely,

Jamie Griffiths

FoI (ITS), Portsmouth City Council

 
Dear Mr Griffiths
 
Thank you for your email.
 
I am sorry that the response did not contain the information you were
seeking. I have asked that Finance Service for this information and I hope
to be able to provide you with an answer shortly.
 
Regards
 
Rachel-Marie Wilson
Corporate Complaints and FOI Officer
 
Portsmouth City Council
Civic Offices
Floor 3, Core 2-3
Guildhall Square
Portsmouth
PO1 2BG
 
T: 023 9283 4456 or ex 1011
E: [1][Portsmouth City Council request email] 
W: [2]www.portsmouth.gov.uk
 
 
 
 

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FoI (ITS), Portsmouth City Council

Dear Mr Griffiths
I apologise if our original response was unclear, however, please see below the answers to your questions:-

1. There is one loan of £11m. The original loan was repaid and replaced with the re-negotiated loan in 2007
2. The Council did not use a Treasury Management Advisor in relation to the transaction.
3. The current interest rate being paid on the loan is 4.65%

Since responding to your original request, an officer with personal recollection of the negotiation of the loan in 2003 has been able to confirm a commission payment of £26,400 was made to Prebon (acting as Broker for the Council) and a further payment of £13,200 was made when the loan was re-negotiated.

I trust this now fulfils your request but please do not hesitate to contact us should you have any further queries.

Yours sincerely

Helen Magri
Corporate Information Governance Officer

Portsmouth City Council
Civic Offices
Guildhall Square
Portsmouth
PO1 2BQ

T:  023 9268 8482
E:  [email address]
E:  [Portsmouth City Council request email]
www.portsmouth.gov.uk

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