Bond investors

Information for bond investors including:

  • Loan capital
  • US dollar bonds
  • Sterling perpetual securities
  • Sterling perpetual notes
  • Sterling step-up notes
  • New notes issues 2014
  • All bonds

 

 Loan capital

  2017
£m
2016
£m
2015
£m
2014
£m
2013
£m
2012
£m
2011
£m
Subordinated guaranteed US$ bonds 6 6 5 5 13 14 14
Perpetual guaranteed subordinated securities (GBP)   369 359 349 342 334 326
Guaranteed perpetual subordinated notes (GBP)         460 470 480
Guaranteed subordinated step-up notes due 2039 (GBP) 39 298 496 495 494 493 493
Guaranteed subordinated notes due 2045 (GBP) 395 395 394 394      
Total loan capital 440 1,068 1,254 1,243 1,309 1,311 1,313

Subordinated guaranteed US$ bonds

The subordinated guaranteed US$9m bonds have a redemption date of 15 October 2029. The rate of interest payable on the bonds is 8.95%

Perpetual guaranteed subordinated securities (GBP)

The Sterling perpetual bonds were issued on 12 May 2006 and the rate of interest payable is 6.701% of the nominal value. The Group has the option to repay the bonds on specific dates starting 12 July 2017. If the bonds are not repaid, from that date, the interest payable would be LIBOR plus 2.51%.

On the 21 March 2017 the Group announced an invitation to the holders of the notes to offer them for purchase in a public tender operation. On the 30 March 2017 the Group announced it had accepted £347m nominal value of the bonds. The remaining bonds were called on 12 July 2017. No notes are outstanding.

Guaranteed perpetual subordinated notes (GBP)

The perpetual notes with a nominal value of £450m were called on 8th December 2014. No notes are outstanding.

On the 21 March 2017, the Group announced a further invitation to the holders of the notes to offer them for purchase in a public tender operation. On the 30 March 2017 , the Group announced it had accepted £245m nominal value of the bonds. Further incremental purchases were made in the open market, with the nominal balance outstanding at 31 Decmeber 2017 of £39m.

Guaranteed subordinated step-up notes due 2039 (GBP)

The subordinated guaranteed dated notes were issued on 20 May 2009. The bonds have a nominal value of £500m and bear interest at a fixed rate of 9.375% until redemption on 20 May 2039. The Group has the option to repay the notes on specific dates from 20 May 2019. If the notes are not repaid on that date, the rates of interest would be reset at a rate of 8.475% plus the appropriate benchmark gilt yield for a further five year period.

On the 30 June 2016, the Group invited holders of the notes to offer them for purchase by the Group for cash in a public tender operation. The offer period expired on 7 July and on the 8 July, the Group announced it had accepted £200m nominal value of bonds. Accordingly, the remaining nominal value of the notes outstanding is £300m.

Guaranteed subordinated notes due 2045 (GBP)

The subordinated guaranteed notes were issued on 10th October 2014. The bonds have a nominal value of £400m and bear a fixed rate of 5.125% until; redemption on 10th October 2045. The Group has the option to repay the notes on specific dates from 10th October 2015. If notes are not repaid on that date, the rate of interest would be reset at a rate of 3.852% plus the appropriate five year benchmark gilt yield.

All bonds

The bonds and notes are contractually subordinated to all other creditors of the Parent Company, such that in the event of a winding up, or bankruptcy, they are to be repaid only after the claims of all other creditors have been met.