The Steam Packet has paid back £27.3m of a £154m loan it received from the Manx Treasury.

Treasury Minister Chris Thomas told the House of Keys this week that the money had been allocated from a £400m bond to purchase the Manxman and refinance an existing loan.

Arbory, Castletown and Malew MHK Jason Moorhouse quizzed Mr Thomas over the size of the loan and the rate of interest paid.

The Manx government issued £400m of 30-year bonds in September 2021 to raise funds for major projects including clean transportation, energy efficiency, affordable housing, education and healthcare.

Mr Thomas told MHKs: ‘From the £400m bond issue in September 2021 a total of £154m was for the Steam Packet group, provided at an interest rate of 1.7%.

‘The bond proceeds were used to purchase the new vessel, the Manxman, and to refinance an existing loan relating to the original purchase of the Steam Packet group.’

He said the total amount repaid up to the last six-monthly instalment was £27,339,454 including interest and all of this has been transferred into the bond sinking fund.

The Steam Packet was taken into state ownership in 2018 at a cost to the taxpayer of £124.3m.

Some £76m of the £124.3m was by way of a loan to the ferry operator to effectively replace the company’s existing debts while the remaining £48.3m was equity funding to purchase the shareholding.

Mr Thomas said the 1.7% interest rate was agreed between the Treasury and the Steam Packet and no further administrative work or other costs were incurred.

He said the principal repayments are fixed amounts and Interest is charged on a six monthly basis, and works out at around £2.1m per year on average.