Research for Action

Dear Stockport Metropolitan Borough Council,

In the following FOI it results that in 2015 the council had 2 loans with RBS:
https://www.whatdotheyknow.com/request/l...

Since my last FOI in July It has been mentioned in the media that RBS has cancelled most of its LOBO loans with councils.

Therefore, in relation to the two RBS loans indicated above, could you kindly provide the following information?

A. A spreadsheet in .xls format containing the following information for each RBS LOBO loans you held in the 2014/2015 financial year (please use a row for each loan and a column for each parameter indicated below):
1. Internal reference number
2. Principal
3. Date loan was signed
4. Drawdown date
5. Maturity date
6. Option period (number of months)
7. Start date for teaser rate (if applicable)
8. Teaser interest rate (if applicable - intended as the discount rate sometimes offered before the initial rate)
9. Start date for initial rate
10. Initial interest rate (intended as the rate set for the term of the loan until the first option
is called)
11. First option date 13.
12. Has the option been exercised?
13. Most recent date when option was exercised (if applicable)
14. Interest rate in 2015/16
15. Interest paid in 2015/16
16. Fair value in March 2016
17. Interest rate in 2018/19
18. Fair value in March 2018
19. Current counterparty
20. Name of treasury management advisor when the loan was taken out
21. Name of broker who arranged the loan
22. Fee paid to the broker for the loan
23. Has the loan been repaid, cancelled, restructured or had the option removed? (yes/no)
24. How was the loan restructured/refinanced? (i.e. loan was transformed into fixed-rate loan by removing the option, or loan was repaid with a new bank loan, or with a PWLB loan, or other - please specify)
25. Date when the LOBO loan was restructured/refinanced (if applicable)
26. Breakage cost or fee paid to the counter-party for the refinancing/restructuring (if applicable)

C. If new loans from the PWLB were used to repay the loans please indicate:
1. Principal of new PWLB debt used to refinance the LOBO loan
2. Maturity date of new PWLB debt used to refinance the LOBO loan
3. Interest rate of new PWLB debt used to refinance the LOBO loan
4. Fair value of new PWLB debt used to refinance the LOBO loan
5. Name of any third-party advisor used for the restructuring/refinancing
6. Fee paid to the advisor for the restructuring/refinancing
7. Name of broker who arranged the restructuring/refinancing
8. Fee paid to the broker for the restructuring/refinancing

D. Please provide copies of:
1. Copies of the original LOBO loan contracts
2. Copies of the redemption contracts if the loans were cancelled.
3. Copies of the invoices for the broker fees for negotiating the loans in the first place.

FOI Officer, Stockport Metropolitan Borough Council

1 Attachment

Dear Sir/Madam,

Thank you for your request for information, however your request is not
valid.

Please could you provide us with your full name as per ICO guidance:

At present there is no name at all on your request.

 

[1]cid:16cb4cd47d64cff311

Please resubmit your request providing a full name.

 

Yours sincerely,

 

 

Paul Metcalf

Information Governance Officer

I: Stockport Council | 1st Floor South Stopford House | Stockport | SK1
3XE

  : 0161 474 4299

        0161 474 3315

 : [email address]

p:http://www.stockport.gov.uk

 

show quoted sections

Research for Action

Dear FOI Officer,
Apologies for not indicating who the request was coming from.

Here it is again. Please confirm it is valid now. Thank you.

Dear Stockport Metropolitan Borough Council,

In the following FOI it results that in 2015 the council had 2 loans with RBS:
https://www.whatdotheyknow.com/request/l...

Since my last FOI in July It has been mentioned in the media that RBS has cancelled most of its LOBO loans with councils.

Therefore, in relation to the two RBS loans indicated above, could you kindly provide the following information?

A. A spreadsheet in .xls format containing the following information for each RBS LOBO loans you held in the 2014/2015 financial year (please use a row for each loan and a column for each parameter indicated below):
1. Internal reference number
2. Principal
3. Date loan was signed
4. Drawdown date
5. Maturity date
6. Option period (number of months)
7. Start date for teaser rate (if applicable)
8. Teaser interest rate (if applicable - intended as the discount rate sometimes offered before the initial rate)
9. Start date for initial rate
10. Initial interest rate (intended as the rate set for the term of the loan until the first option
is called)
11. First option date 13.
12. Has the option been exercised?
13. Most recent date when option was exercised (if applicable)
14. Interest rate in 2015/16
15. Interest paid in 2015/16
16. Fair value in March 2016
17. Interest rate in 2018/19
18. Fair value in March 2018
19. Current counterparty
20. Name of treasury management advisor when the loan was taken out
21. Name of broker who arranged the loan
22. Fee paid to the broker for the loan
23. Has the loan been repaid, cancelled, restructured or had the option removed? (yes/no)
24. How was the loan restructured/refinanced? (i.e. loan was transformed into fixed-rate loan by removing the option, or loan was repaid with a new bank loan, or with a PWLB loan, or other - please specify)
25. Date when the LOBO loan was restructured/refinanced (if applicable)
26. Breakage cost or fee paid to the counter-party for the refinancing/restructuring (if applicable)

C. If new loans from the PWLB were used to repay the loans please indicate:
1. Principal of new PWLB debt used to refinance the LOBO loan
2. Maturity date of new PWLB debt used to refinance the LOBO loan
3. Interest rate of new PWLB debt used to refinance the LOBO loan
4. Fair value of new PWLB debt used to refinance the LOBO loan
5. Name of any third-party advisor used for the restructuring/refinancing
6. Fee paid to the advisor for the restructuring/refinancing
7. Name of broker who arranged the restructuring/refinancing
8. Fee paid to the broker for the restructuring/refinancing

D. Please provide copies of:
1. Copies of the original LOBO loan contracts
2. Copies of the redemption contracts if the loans were cancelled.
3. Copies of the invoices for the broker fees for negotiating the loans in the first place.

Kind regards,
Ludovica Rogers

FOI Officer, Stockport Metropolitan Borough Council

Dear Sir/Madam,

Thank you for your request for information (FOI 5356858 ) submitted under the Freedom of Information Act 2000 which has been given the above mentioned reference number. Please quote this on any correspondence regarding your request.

Stockport Council will respond to your request within 20 working days from the date of receipt. If there will be a charge for disbursements e.g. photocopying in order to provide the information, we will inform you as soon as possible to see if you wish to proceed; however such charges are usually waived if they amount to less than £10.

Yours sincerely,

Paul Metcalf
Information Governance Officer
I: Stockport Council | 1st Floor South Stopford House | Stockport | SK1 3XE
: 0161 474 4299
0161 474 3315
: [email address]
p:http://www.stockport.gov.uk

show quoted sections

FOI Officer, Stockport Metropolitan Borough Council

1 Attachment

Dear Ms Rogers,

 

I am writing in response to your request for information (ref FOI 5356858
).

 

The relevant Council Service(s) has searched for the requested information
and our response is as follows/attached.

 

In the following FOI it results that in 2015 the council had 2 loans with
RBS:

[1]https://www.whatdotheyknow.com/request/l...

 

Since my last FOI in July It has been mentioned in the media that RBS has
cancelled most of its LOBO loans with councils.

 

Therefore, in relation to the two RBS loans indicated above, could you
kindly provide the following information?

 

A. A spreadsheet in .xls format containing the following information for
each RBS LOBO loans you held in the 2014/2015 financial year (please use a
row for each loan and a column for each parameter indicated below):

1. Internal reference number

2. Principal

3. Date loan was signed

4. Drawdown date

5. Maturity date

6. Option period (number of months)

7. Start date for teaser rate (if applicable) 8. Teaser interest rate (if
applicable - intended as the discount rate sometimes offered before the
initial rate) 9. Start date for initial rate 10. Initial interest rate
(intended as the rate set for the term of the loan until the first option
is called) 11. First option date 13.

12. Has the option been exercised?

13. Most recent date when option was exercised (if applicable) 14.
Interest rate in 2015/16 15. Interest paid in 2015/16 16. Fair value in
March 2016 17. Interest rate in 2018/19 18. Fair value in March 2018 19.
Current counterparty 20. Name of treasury management advisor when the loan
was taken out 21. Name of broker who arranged the loan 22. Fee paid to the
broker for the loan 23. Has the loan been repaid, cancelled, restructured
or had the option removed? (yes/no) 24. How was the loan
restructured/refinanced? (i.e. loan was transformed into fixed-rate loan
by removing the option, or loan was repaid with a new bank loan, or with a
PWLB loan, or other - please specify) 25. Date when the LOBO loan was
restructured/refinanced (if applicable) 26. Breakage cost or fee paid to
the counter-party for the refinancing/restructuring (if applicable)

 

Please see attached spreadsheet for information in regard to Section A.

 

Please note we have exempted information in regard to interest rates and
options and broker fees etc.

 

Information in regard to interest rates and options and broker fees is
exempt by reason of  confidentiality clauses being present in reference to
the agreements in place between the lender and Stockport MBC, and the
broker and Stockport MBC, they are therefore exempt under Section 41 of
the Freedom of Information Act 2000, information provided in confidence.

 

We are also exempting the information you have requested under Section 43
of the Freedom of Information Act 2000 as it is considered commercially
sensitive.

 

We believe that by releasing this information it would be against the
council’s commercial interests as well as that of the companies.

 

However as Section 43 is not an absolute exemption I have detailed a
public interest test below outlining this decision.

 

Reasons in favour:

o Stockport Council is committed to transparency and releasing this
information would be in line with that.

Reasons against:

o Releasing the interest rates and options brokerage fees would be
likely to prejudice the Council’s, the lender’s and the broker’s
Commercial interest .
o The information contained in the original loan agreements regarding
interest rates and option information was provided in confidence as
part of the loan agreement. Release of this information would be
likely to impact on the ability of all parties to negotiate
competitive terms in any future transactions and as such publication
could impact the lender and the councils commercial interests.

 

In consideration the reasons against outweigh the reasons in favour and
the exemption is applied.

 

There does not appear to be a Section B to the questions provided.

 

C. If new loans from the PWLB were used to repay the loans please
indicate:

1. Principal of new PWLB debt used to refinance the LOBO loan 2. Maturity
date of new PWLB debt used to refinance the LOBO loan 3. Interest rate of
new PWLB debt used to refinance the LOBO loan 4. Fair value of new PWLB
debt used to refinance the LOBO loan 5. Name of any third-party advisor
used for the restructuring/refinancing 6. Fee paid to the advisor for the
restructuring/refinancing 7. Name of broker who arranged the
restructuring/refinancing 8. Fee paid to the broker for the
restructuring/refinancing

 

N/a

 

D. Please provide copies of:

1. Copies of the original LOBO loan contracts 2. Copies of the redemption
contracts if the loans were cancelled.

3. Copies of the invoices for the broker fees for negotiating the loans in
the first place.

 

Information in regard to loan documents and broker fees are exempt under
Section 41 of the Freedom of Information Act 2000, information provided in
confidence. This is due to the fact that there are confidentiality
clauses in place preventing disclosure.

 

In addition and as detailed above, the release of the information
contained within these legal documents would be likely to impact on the
ability of all parties to negotiate competitive terms in any future
transactions and are therefore exempt under Section 43 of the Freedom of
Information Act 2000.

 

However as Section 43 is not an absolute exemption I have detailed a
public interest test below outlining this decision.

 

Reasons in favour:

o Stockport Council is committed to transparency and releasing this
information would be in line with that.

Reasons against:

o Releasing the interest rates and options brokerage fees would be
likely to prejudice the Council’s, the lender’s and the broker’s
Commercial interest .
o The information contained in the original loan agreements regarding
interest rates and option information was provided in confidence as
part of the loan agreement. Release of this information would be
likely to impact on the ability of all parties to negotiate
competitive terms in any future transactions and as such publication
could impact the lender and the councils commercial interests.

 

If you are unhappy with the way we have handled your request for
information, you are entitled to ask for an internal review; however you
must do so within 40 working days of the date of this response. Any
internal review will be carried out by a senior member of staff who was
not involved with your original request. To ask for an internal review,
contact [2][email address] in the first instance.

                          

If you are unhappy with the outcome of any internal review, you are
entitled to complain to the Information Commissioner. To do so, contact:

 

Information Commissioner’s Office

Wycliffe House

Water Lane

Wilmslow

Cheshire

SK9 5AF

 

[3]www.ico.gov.uk

 

0303 123 1113

Yours sincerely,

 

Paul Metcalf

Information Governance Officer

+: Stockport Council | 1^st Floor South Stopford House | Stockport | SK1
3XE

( : 0161 474 4299

        0161 474 3315

*: [4][email address]

::[5]http://www.stockport.gov.uk

 

 

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