In this guide to lending and secured finance in Jersey, lawyers from our Banking and Finance practice explore the following topics: guarantees; collateral security; financial assistance; withholding stamp and other taxes, notarial and other costs; judicial enforcement; bankruptcy proceedings; jurisdiction and waiver of immunity; licensing; and the impact of COVID-19.
COVID-19 put significant pressure on a number of businesses over 2020, resulting in an increase in complex restructurings - generally debt-for-equity swap transactions into a new or existing Jersey structure - many of which also included a new money element.
The fund finance market remained very resilient and a large number of new facilities were implemented over the period. This segment of the loan market was probably the most active in terms of new lending and work included subscription line facilities (the largest being over ?1 billion), GP facilities, co-investment facilities and NAV facilities. This type of financing was an important tool in allowing funds to remain economically agile during the period.
There was also significant activity related to Government support measures following the business closures and suspensions as a result of the COVID-19 pandemic.
Carey Olsen played a leading role advising the Government of Jersey on its financing needs in response to COVID-19. Significant matters include:
- States of Jersey & Ports of Jersey - acted as lead counsel to the States and Ports of Jersey in relation to a £10 million loan to Blue Islands airline. The loan was to support Blue Islands to allow it to maintain air links between Jersey and certain UK destinations.
- States of Jersey - acting as lead counsel advising the States of Guernsey, the Government of Jersey and the Isle of Man Government (with the assistance of their Attorney General's Chambers) on the establishment of the Crown Dependencies £140 million loan guarantee schemes.
On real estate finance, Carey Olsen advised Sun Venture on the acquisition financing of One New Oxford Street, London as well as the £552 million acquisition of 1&2 New Ludgate, London, which was the largest UK real estate deal of 2020.
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Originally published in conjunction with International Comparative Legal Guides.
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