Treasury defends speed of bond process
FAVOURABLE market conditions are behind Treasury's speedy plans to launch a sovereign bond and its 'short' tendering process for expert help, the department has said.
Treasury and Resources yesterday hit back at claims it had held an insufficient and unfair process, in its search for a professional partner to support the proposed step into the bond market.
The department said it was hoping to take advantage of the chance to issue a bond at historically low rates, but it had still held an open and transparent procurement process, with no predetermined outcome.
It was responding to criticism from Saffery Champness investment manager Mark Despres, who warned that the island's finance industry could be losing out in the process, which had a 'predetermined' feel and was too short.
Treasury and Resources said this was certainly not the case and a number of local institutions had put themselves forward.
'The department has been advised that a short timeframe was essential in order to maximise the opportunity to achieve the best terms possible for the bond if States approval is given next week, rather than incurring the delay of an extended tender process,' said a spokesman.
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