Treasury Application Note: VfM in refinancing
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Last modified date:
14 February 2007
Refinancings and the issues they raise are complex and often create new risks for an authority and so can make assessment of their risk and VfM far from straightforward. The application note is designed to help authorities and their contractors who bring forward refinancing proposals, to undertake a thorough analysis. The provisions of the Application Note do not alter or replace any of the existing guidance.
It covers the issues for authorities in giving consent to refinancing:
- maximum level of senior debt
- increased termination liabilities
and other issues which may arise at the time of refinancing and for which consents are required:
- contract amendments
- changes to the unitary charge profile or indexation