SPECIAL ORDINANCE A (viii):
Application of bond proceeds arising from the authority granted by Grace 2 of 10 May 2018

Grace 1 of 5 December 2018

1. By Grace 2 of 10 May 2018, the Regent House gave the Council authority to arrange external finance for income-generating projects up to a total amount of £600m.1

2. Projects will qualify as income-generating and therefore will be eligible to receive funds arising from the bond proceeds if, in the opinion of the Council on the advice of its Finance Committee, they:

1. (a)form part of the non-operational estate;

1. (b)are income-generating with a high degree of confidence in associated cash inflows;

1. (c)meet appropriate thresholds of commerciality, being capable of delivering cash returns over and above those required to service interest and capital repayment requirements of the bond, and delivering either:

1.  (i)the same returns as projects in the external market that are comparable in their risk and return profile; or

1.  (ii)a limited reduction to such returns that is expressly identified and justified on strategic grounds and approved as such by the Council;

1. (d)have a well-defined and stress-tested business case; and

1. (e)have clarity of responsibilities, appropriate resourcing, and well-defined governance, monitoring, and reporting arrangements.

3. Projects will be identified as income-generating and monitored under the existing processes for the review and oversight of capital and other projects, with regular reports on the use of the bond proceeds provided to the Finance Committee.