GHA was investigating own bond just before States' announcement
THE Guernsey Housing Association was investigating the possibility of setting up its own bond just months before the States one was announced publicly, according to its chief executive.
A number of concerns over lack of consultation and due diligence in the set-up of the States' £330m. bond were raised by an independent report by KPMG earlier this week.
Steve Williams, chief executive of the GHA, said the bond fitted its needs perfectly, but felt there could have been better correspondence before it was launched.
'We thought the States bond was a good idea for what we needed,' he said. 'We were looking at potentially getting one ourselves before it was publicly announced.
'We had already taken up external advice and consulted experts in this field two or three months earlier. Because of this I think we were a bit more geared up when it was announced as to the kind of issues you would have and how complicated it is to get a bond right.'
The association's long-term objectives meant it had struggled to get the interest guarantees it needed in the commercial marketplace.
'We had a major issue building new housing after the banking crisis in 2008 as we were no longer able to get a 30-year guarantee,' he said.
'We don't chop and change our rates, we are a long-term stable business that needed long-term, fixed interest costs on our loans.
'We are trying to minimise risk and that is why we saw the attraction of the bond.
'We had discussions with the States and pledged to take £80m. and plan to take more at the tail-end of this year to help us to model finance our new homes, so it is beneficial for us.'
