Please provide details of the 29 LOBO loans borrowed by Edinburgh Council?

Joel M Benjamin made this Freedom of Information request to City of Edinburgh Council

This request has been closed to new correspondence from the public body. Contact us if you think it ought be re-opened.

The request was partially successful.

Joel M Benjamin

Dear City of Edinburgh Council

For the 29 LOBO loan contracts the council has taken out, please provide.

1. The exact date each LOBO loan was signed? and by whom?

2. The loan principal for each loan?

3. With which financial institution each loan was taken out?

4. Which Treasury Management Advisor instructed the council to enter the LOBO(s)?

5. Since the LOBO loans were obtained, have the loans been onsold to 3rd parties? If so who?

6. The broker(s) council employed for each of the 29 LOBO loans?

7. Please provide a copy of the original, signed LOBO agreement(s).

Yours faithfully,

Joel M Benjamin

Freedom of Information, City of Edinburgh Council

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City of Edinburgh Council

Mr Joel Benjamin

Date: 04/05/2015

Our ref: 7478

Dear Mr Benjamin

Acknowledgement of Request

Subject: LOBO loan contracts

Thank you for your request for information of 04/05/2015 which was received on 04/05/2015. In your request you asked for the following;

"For the 29 LOBO loan contracts the council has taken out, please provide.
1. The exact date each LOBO loan was signed? and by whom?
2. The loan principal for each loan?
3. With which financial institution each loan was taken out?
4. Which Treasury Management Advisor instructed the council to enter the LOBO(s)?
5. Since the LOBO loans were obtained, have the loans been onsold to 3rd parties? If so who?
6. The broker(s) council employed for each of the 29 LOBO loans?
7. Please provide a copy of the original, signed LOBO agreement(s)."

I can confirm that your request will be processed under the Freedom of Information (Scotland) Act 2002, Environmental Information Regulations (Scotland) 2004, or the INSPIRE (Scotland) Regulations 2009.

You will receive the information requested within 20 working days (please take note of the bank holiday) unless the Council does not hold the information, or there is a reason for it to be withheld. We will write to you in any event.

In some circumstances a fee may be payable and if that is the case we will let you know.

If you have any requirements regarding the format any information should be supplied in, e.g. the language to be used, audio, large print and so on, then please let me know.

If you have any queries or concerns, do not hesitate to get in touch. Please quote the reference number above in any future communications.

To promote transparency and accountability, please note it is the Council’s policy to publish all request details and responses made under the freedom of information legislation. This information will be made available through the Council’s website and will not include your personal details. The disclosure log is available at the following link: http://www.edinburgh.gov.uk/homepage/175....

Further information about your rights and accessing information is available on our website at: www.edinburgh.gov.uk

Yours sincerely,

Information Governance Unit
Level 2:1, Waverley Court, Edinburgh EH8 8BG Tel 0131 200 2340
[Edinburgh City Council request email] www.edinburgh.gov.uk

Information Compliance 5, City of Edinburgh Council

2 Attachments

Mr Joel Benjamin

 

Date: 11/06/2015

 

Our ref: 7478

 

Dear Mr Benjamin

 

Freedom of Information (Scotland) Act 2002 - Partial Release of
Information

 

Subject: LOBO loan contracts

 

Thank you for your request for information of 04/05/2015, which has been
processed under the terms of the Freedom of Information (Scotland) Act
2002. Unfortunately, the Council is only able to meet part of your
request; this information is released to you now in the format requested.
Please also accept our apologies for the delay in our response.

 

For ease of reference I have replicated your information request below
followed by our answers.

 

For the 29 LOBO loan contracts the council has taken out, please provide.

Q1a. What was the exact date each LOBO loan was signed?

 

A1a. The Council does not hold the exact date each LOBO loan was signed
which you requested. Please note that this letter constitutes a formal
notice under section 17 of the Freedom of Information (Scotland) Act 2002.
They were signed when the loan was agreed, between 1998 and 2011. The
original bond certificate signed on behalf of the Council is held by the
institution which currently has title to the loan. Where the Council holds
a copy of the certificate, the attached list shows the date of signature.

 

Q1b. And by whom?

A1b. Signature would have been by two of the Council's authorised
signatories for financial instruments.

Q2. What was the loan principal for each loan?

A2. Please see the attached list of all the Authority’s market debt.

Q3. With which financial institution each loan was taken out?

A3. Please see the attached list.

Q4. Which Treasury Management Advisor instructed the council to enter the
LOBO(s)?

 

A4. The Council’s Advisors were Sector and Butlers.

Q5a. Since the LOBO loans were obtained, have the loans been on-sold to
3rd parties, and Q5b. If so who?

A5a & 5b. The only bond in the list which could be said to have been
‘sold’ was the bond held by Barclays and transferred to K A Finance as
part of a larger transaction. However, there have been a number of
re-registration or transfers of bonds as a result of group restructuring,
mergers and the creation of resolution institutions following the global
financial crisis. For completeness, the original and current bond holders
are shown in the attached list. We would also note that the start date is
the date on which the bond was issued.  Some bonds were issued as a result
of a rescheduling (increase in term and reduction in interest rate). For
example the £12.5m bond held by Barclays was as a result of a £12.5m bond
issued to Bayerische Landesbank being purchased in the market by Barclays
and then restructured at which point the current bond was issued.

Q6. The broker(s) council employed for each of the 29 LOBO loans.

A6. Please see the attached list.

 

Q7. Please provide a copy of the original, signed LOBO agreement(s).

A7. These LOBOs have been issued as a Bond under the Scottish borrowing
regulations, and the primary document is therefore the bond certificate.
The original bond certificate signed on behalf of the Council is therefore
held by the institution which currently has title to the loan. In some
cases the Council holds a copy of the bond certificate, and where we do, a
copy has been enclosed.

 

Please note that third party personal information has been redacted from
the information provided. I consider that disclosing such information
would breach the first data protection principle, that of fair processing,
as it would not be fair, or expected, for information which could identify
these individuals to be released into the public domain. This is in
accordance with section 38 (2)(a) of the act.

 

To promote transparency and accountability, please note it is the
Council’s policy to publish all request details and responses made under
the freedom of information legislation. This information will be made
available through the Council’s website and will not include your personal
details. The disclosure log is available at the following link:

http://www.edinburgh.gov.uk/homepage/175...

 

Your right to seek a review

 

I appreciate that our decision may disappoint you and I am sorry that we
have not been able to release all the information you requested on this
occasion. If you are unhappy with the way we have dealt with your request,
you can ask us to review our actions and decisions by writing to:

 

Head of Legal Risk and Compliance

The City of Edinburgh Council

Waverley Court Business Centre 2:1

4, East Market Street

Edinburgh

EH8 8BG or,

Email: legal.[Edinburgh City Council request email]

 

Please note that your request must be in a recordable format (email,
letter, audio tape etc.), and that you have 40 working days upon receipt
of this letter to ask for a review. You will receive a full response to
your review request within 20 working days of its receipt. Please quote
the reference number above in any future communications.

 

If you are not content with the outcome of the review, you can ask the
Scottish Information Commissioner to review our decision. You must submit
your complaint to the Commissioner within 6 months of receiving our review
response. The Commissioner can be contacted at:

 

The Office of the Scottish Information Commissioner

Kinburn Castle

Doubledykes Road

St Andrews

Fife

KY16 9DS

Telephone: 01334 464610

Fax: 01334 464611

Website www.itspublicknowledge.info

Email: [email address]

 

 

Yours sincerely

 

Clayton Pratt

Information Compliance Officer

 

Information Governance Unit

Level 2:1, Waverley Court, Edinburgh EH8 8BG Tel 0131 200 2340

[Edinburgh City Council request email] www.edinburgh.gov.uk

 

 

 

 

 

 

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Joel M Benjamin

Dear City of Edinburgh Council,

Please pass this on to the person who conducts Freedom of Information reviews.

I am writing to request an internal review of City of Edinburgh Council's handling of my FOI request 'Please provide details of the 29 LOBO loans borrowed by Edinburgh Council?'.

In relation to question 6) regarding the broker employed for each loan, the council replied "refer to attached list" however no such list appears to be attached?

Note: the loan certificates do not state the name of the broker, nor the amount paid in commission for each transaction?. As this appears to been a simple omission on the part of council, please provide this information as soon as possible.

A full history of my FOI request and all correspondence is available on the Internet at this address: https://www.whatdotheyknow.com/request/p...

Yours faithfully,

Joel M Benjamin

Freedom of Information, City of Edinburgh Council

Thank you for your email. We are dealing with your enquiry and we will get
back to you as soon as possible.
Regards,
 
Customer Services.
 
This is an automatically generated email. Please do not reply to this
email.

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City of Edinburgh Council

Mr Joel Benjamin

Date: 16/06/2015

Our ref: 7918

Dear Mr Benjamin

Acknowledgement of Request

Subject: LOBO loans

Thank you for your request for information of 12/06/2015 which was received on 12/06/2015. In your request you asked for the following;

"Note: the loan certificates do not state the name of the broker, nor the amount paid in commission for each transaction?. As this appears to been a simple omission on the part of council, please provide this information as soon as possible."

I can confirm that your request will be processed under the Freedom of Information (Scotland) Act 2002, Environmental Information Regulations (Scotland) 2004, or the INSPIRE (Scotland) Regulations 2009.

You will receive the information requested within 20 working days unless the Council does not hold the information, or there is a reason for it to be withheld. We will write to you in any event.

In some circumstances a fee may be payable and if that is the case we will let you know.

If you have any requirements regarding the format any information should be supplied in, e.g. the language to be used, audio, large print and so on, then please let me know.

If you have any queries or concerns, do not hesitate to get in touch. Please quote the reference number above in any future communications.

To promote transparency and accountability, please note it is the Council’s policy to publish all request details and responses made under the freedom of information legislation. This information will be made available through the Council’s website and will not include your personal details. The disclosure log is available at the following link: http://www.edinburgh.gov.uk/homepage/175....

Further information about your rights and accessing information is available on our website at: www.edinburgh.gov.uk

Yours sincerely,

Information Governance Unit
Level 2:1, Waverley Court, Edinburgh EH8 8BG Tel 0131 200 2340
[Edinburgh City Council request email] www.edinburgh.gov.uk

N Dunbar left an annotation ()

The final four bond certificates for RBS do not indicate the trade dates, nor whether the loans included a LOBO, and if so the first option date and call frequency. This information needs to be provided to fully understand the financial position of the council.

N Dunbar left an annotation ()

The council should provide dates for the start and end of its relationships with Butlers and Sector respectively, in order to assess which borrowing decisions were influenced by each adviser.

Information Compliance 3, City of Edinburgh Council

2 Attachments

Mr Joel Benjamin

 

Date: 09/07/2015

 

Our ref: 7918

 

Dear Mr Benjamin

 

Freedom of Information (Scotland) Act 2002 - Partial Release of
Information

 

Subject: LOBO loans

 

Thank you for your request for information of 12/06/2015, which has been
processed under the terms of the Freedom of Information (Scotland) Act
2002. Unfortunately, the Council is only able to meet part of your
request; this information is released to you now in the format requested.

 

In relation to a previous response regarding LOBO loans, you made the
following request:

 

The loan certificates do not state the name of the broker, nor the amount
paid in commission for each transaction. As this appears to been a simple
omission on the part of council, please provide this information as soon
as possible.

 

Please find a spreadsheet with information on LOBO loans attached.  I can
confirm that the amount paid in commission has not been included in this
spreadsheet and will not be provided.  Under the terms of the legislation,
a request for information can be refused where one or more exemptions
listed in the legislation apply. In this instance, the Council is claiming
the following exemption to the information that you have requested:
Section 33 (1)(b) – Commercial interests and the economy. Information is
exempt information if its disclosure under this Act would, or would be
likely to, prejudice substantially the commercial interests of any person
(including without prejudice to that generality, a Scottish public
authority).

 

Disclosure of the information requested would, or would be likely to;
prejudice substantially the commercial interests of both the Council and
broker providing the service.  I am also required to consider the
application of the public interest test in section 2(1)(b). In doing so
the Council appreciates the public interest in ensuring that it receives
value for money and is transparent and accountable in how it spends public
funds. However, if the Council were to release this information into the
public domain, it would cause substantial harm to the commercial interests
of brokers and to the Council, as it could provide external competitors
with an unfair advantage when competing for Council contracts and work.
The Council therefore finds that the public interest in providing this
information is outweighed by the Council’s need to maintain
confidentiality on costs in line with the need to provide best value for
money and ensuring fair, open and transparent competition.

 

To promote transparency and accountability, please note it is the
Council’s policy to publish all request details and responses made under
the freedom of information legislation. This information will be made
available through the Council’s website and will not include your personal
details. The disclosure log is available at the following link:

http://www.edinburgh.gov.uk/homepage/175...

 

Your right to seek a review

 

I appreciate that our decision may disappoint you and I am sorry that we
have not been able to release all the information you requested on this
occasion. If you are unhappy with the way we have dealt with your request,
you can ask us to review our actions and decisions by writing to:

 

Head of Legal Risk and Compliance

The City of Edinburgh Council

Waverley Court Business Centre 2:1

4, East Market Street

Edinburgh

EH8 8BG or,

Email: legal.[Edinburgh City Council request email]

 

Please note that your request must be in a recordable format (email,
letter, audio tape etc.), and that you have 40 working days upon receipt
of this letter to ask for a review. You will receive a full response to
your review request within 20 working days of its receipt. Please quote
the reference number above in any future communications.

 

If you are not content with the outcome of the review, you can ask the
Scottish Information Commissioner to review our decision. You must submit
your complaint to the Commissioner within 6 months of receiving our review
response. The Commissioner can be contacted at:

 

The Office of the Scottish Information Commissioner

Kinburn Castle

Doubledykes Road

St Andrews

Fife

KY16 9DS

Telephone: 01334 464610

Fax: 01334 464611

Website www.itspublicknowledge.info

Email: [email address]

 

 

Yours sincerely

 

Vicky Robertson

Information Compliance Officer

 

Information Governance Unit

Level 2:1, Waverley Court, Edinburgh EH8 8BG Tel 0131 200 2340

[Edinburgh City Council request email] www.edinburgh.gov.uk

 

 

 

 

 

 

[1]Consulting Edinburgh footer.jpg

[2]Have your say on the issues that matter to you

 

 

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References

Visible links
1. https://consultationhub.edinburgh.gov.uk/
2. https://consultationhub.edinburgh.gov.uk/

Joel M Benjamin left an annotation ()

Lacking trade dates, advisor details and brokerage fees payable on Edinburgh's £274m in LOBO loans. ICO referral...