Notes to the parent company
financial statements
- « 5 Retained profits
- 6 Subordinated liabilities
- 7 Debt securities in issue »
6 Subordinated liabilities
2008 |
2007 |
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Preferred securities |
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Fixed/Floating Rate Non-Cumulative Callable Preference Shares callable 2015 (£600 million)† |
584 |
593 |
|
Fixed/Floating Rate Non-Cumulative Callable Preference Shares callable 2016 (US$ 1,000 million)† |
824 |
515 |
|
|
6% Non-Cumulative Redeemable Preference Shares |
– |
– |
|
Undated subordinated liabilities |
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6% Undated Subordinated Step-up Guaranteed Bonds callable 2032 (£500 million)* |
497 |
497 |
|
Dated subordinated liabilities |
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91/8% Subordinated Bonds 2011 (£150 million) |
149 |
149 |
|
57/8% Subordinated Guaranteed Bonds 2014 (€750 million) |
821 |
591 |
|
970 |
740 |
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Total subordinated liabilities |
2,875 |
2,345 |
These liabilities will, in the event of the winding-up of the issuer, be subordinated to the claims of depositors and all other creditors of the issuer.
†Further information regarding the fixed/floating rate non-cumulative callable preference shares can be found in note 40 to the consolidated financial statements.
*In certain circumstances, these bonds would acquire the characteristics of preference share capital. Any repayments of undated loan capital would require the prior consent of the Financial Services Authority. They are accounted for as liabilities as coupon payments are mandatory as a consequence of the terms of certain preference shares. At the callable date the coupon on these bonds will be reset by reference to the applicable five year benchmark gilt rate.