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13 of 2016 - Loan (RBC)(Funding Capital Expenditure 2016-2017) Ordinance 2016 Flipbook PDF
13 of 2016 - Loan (RBC)(Funding Capital Expenditure 2016-2017) Ordinance 2016
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TURKS AND CAICOS ISLANDS LOAN (ROYAL BANK OF CANADA)(FUNDING CAPITAL EXPENDITURE 2016/2017) ORDINANCE 2016 (Ordinance 13 of 2016) ARRANGEMENT OF SECTIONS SECTION
1. 2. 3. 4.
Short title and commencement Amount to be borrowed Terms Charge on Consolidated Fund
1
TURKS AND CAICOS ISLANDS LOAN (RBC) (FUNDING CAPITAL EXPENDITURE 20162017) ORDINANCE 2016 (Ordinance 13 of 2016)
Assent…………………………………….………..…..11th May 2016 Publication in Gazette…………….……...………..13th May 2016 Commencement………………………in accordance with section 1 AN ORDINANCE TO PROVIDE FOR BORROWING BY THE GOVERNMENT TO ASSIST WITH FUNDING CAPITAL EXPENDITURE FOR THE YEAR 2016/2017; AND FOR CONNECTED PURPOSES.
ENACTED by the Legislature of the Turks and Caicos Islands.
Short title and commencement 1. This Ordinance may be cited as the Loan (Royal Bank of Canada)(Funding Capital Expenditure 2016/2017) Ordinance 2016 and shall come into operation on such day as the Governor may appoint by Notice published in the Gazette.
Amount to be borrowed 2. (1) Subject to the provisions of this Ordinance and to the prior approval of a Secretary of State, the Government may borrow such sums not exceeding in total fifteen million United States dollars from the Royal Bank of Canada for the purposes of assisting with funding capital expenditure for the financial year 2016/2017. (2) The sums borrowed under subsection (1) shall be broken down into two segments of seven million five hundred thousand United States dollars each.
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Terms 3. (1) In respect of the borrowing under section 2, the Government shall adopt the terms set out in subsection (2) and may adopt such other terms as it thinks fit. (2) In respect of the sums borrowed under section 2, the said sums— (a) shall be repaid— (i) in relation to segment 1, interest only payments for twelve months commencing, ninety days after drawdown and on each 90 th day thereafter, and then repayable by fourteen equal principal payments, each such repayment shall be in the amount of five hundred and thirty-five thousand seven hundred and fourteen United States dollars (US $535,714); and (ii) in relation to segment 2, interest only payments for twenty-four months, commencing ninety days after drawdown and on each 90th day thereafter, and then repayable by fourteen equal principal payments, each such repayment shall be in the amount of five hundred and thirty-five thousand seven hundred and fourteen United States dollars (US $535,714); (b) shall initially bear interest at the rate of 1.20 % per annum (this rate is variable dependent on Turks and Caicos Islands’ credit rating) above the three month London Interbank Offered Rate from time to time for the United States dollar; (c) shall be subject to changes in the interest rate over the London Interbank Offered Rate if Turks and Caicos Islands’ credit rating changes, as follows: Credit rating / interest rate (over LIBOR) A-/above
1.05%
BBB+
1.20%
BBB
1.50%
BBB-
1.80%
BB+
3.50%
BB
3.75%
BB-
4.00%
3
B+
4.25%
B
4.50%
B-
4.75%
CCC+ or worse
5.00%; and
(d) may be repaid early without penalty, subject to giving thirty days’ notice.
Charge on Consolidated Fund 4. The amounts required for the repayment of sums borrowed by the Government under section 2 and for the payment of interest and other charges associated therewith shall be charged on and paid out of the Consolidated Fund. __________
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