Jersey government issues bond to pay for social housing

Jersey's government is in the process of borrowing £250m through the issue of a bond to invest in building more social housing.

Treasury Minister, Senator Philip Ozouf, said it was the island's first bond issue.

He said the bond would be paid back over the next 40 years, at an interest rate of 3.75%.

In May, the island was awarded an AA+ credit rating by agency Standard and Poor's.

Senator Ozouf said: "The right thing to do has been discussed on a number of occasions and social housing is capital hungry but it also repays itself because the States receives a rental from that investment.

"We can go to bond markets, secure very low interest rates for a very long period of time and we can invest more in social housing than otherwise would have been the case."