The Steam Packet has repaid more than £27 million to the government following the £154 million loan from the 2021 bond issue, Treasury Minister Chris Thomas has confirmed.
Responding to questions in the House of Keys, Mr Thomas revealed that the total amount repaid up to the last six-monthly instalment is £27,330,454, covering both principal and interest.
The £154 million allocation from the September 2021 bond issue was provided at an interest rate of 1.7%.
Mr Thomas said the funds were used to purchase the new vessel Manxman and refinance an existing loan relating to the 2018 acquisition of the Steam Packet.
“The proceeds from hedging more than covered the bond issue fees,” Mr Thomas told members. “So in actual fact, everything went right for that bond, for the Isle of Man. We got a low interest rate at a tight spread to UK gilts.”
Jason Moorhouse MHK had asked about repayments and whether funds had been placed in the sinking fund.
The minister confirmed that annual contributions to the sinking fund are £2.7 million for the Manxman and £2.5 million for refinancing the debt, calculated on a straight line basis.
Mr Thomas clarified that the reserve bond fund and sinking fund together total £137,292,190, representing 25.6% of the reserve general balance.