RBS 2003 Annual Report Download - page 169

167
Annual Report and Accounts 2003
Notes on the accounts
32 Minority interests – non-equity
2003 2002
£m £m
Non-equity shares issued by NatWest:
Non-cumulative preference shares of US$25 (1) 299 325
Non-cumulative preference shares of £1 (2) 166 166
465 491
Non-equity shares issued by other subsidiaries:
Non-cumulative trust preferred securities of 1,000 (3) 875 806
Non-cumulative trust preferred securities of US$1,000 (4) 1,245 456
Other non-equity minority interests 139 97
Total 2,724 1,850
Notes:
(1) The US$250 million non-cumulative preference shares, Series B, of US$25 each carry a gross dividend of 8.75% inclusive of associated tax credit. They are redeemable at the
option of NatWest at US$25 per share.
The US$300 million non-cumulative preference shares, Series C, of US$25 each carry a gross dividend of 8.625% inclusive of associated tax credit. They are redeemable at the
option of NatWest from 9 April 2002 to 8 April 2008 inclusive, at a premium per share of US$0.90 in 2004 reducing by US$0.30 in each successive year. There is no redemption
premium if the date of redemption falls after 8 April 2007.
(2) The £140 million 9% non-cumulative preference shares, Series A, of £1 each are non-redeemable.
(3) In June 2002, a wholly-owned subsidiary of the Group, issued 1.25 million Series A non-cumulative trust preferred securities at 1,000 per security. Net proceeds received were
1,237 million, £777 million. These securities have no maturity date and are not redeemable at the option of the holders at any time. The securities may, with the consent of the
UK Financial Services Authority (“FSA”), be redeemed, in whole or in part, by the issuer on 30 June 2012 and on any interest payment date thereafter. They may also be
redeemed in whole, but not in part, upon the occurrence of certain tax and regulatory events. Interest on the securities is payable annually in arrears at a fixed annual rate of
6.467% until 30 June 2012, and thereafter quarterly in arrears at a rate of 2.1% above three month EURIBOR for the relevant payment period.
(4) In December 2002, a wholly-owned subsidiary of the Group, issued 750,000 Series B non-cumulative trust preferred securities at US$1,000 per security. Net proceeds received
were US$735 million, £465 million. These securities have no maturity date and are not redeemable at the option of the holders at any time. The securities may, with the consent of
the FSA, be redeemed, in whole or in part, by the issuer on 31 March 2008 or on any interest payment date thereafter. They may also be redeemed in whole, but not in part,
upon the occurrence of certain tax and regulatory events. Interest on the securities is payable quarterly in arrears at a fixed annual rate of 6.8% beginning on 31 March 2003.
In May 2003, a wholly-owned subsidiary of the Group, issued 850,000 Series I non-cumulative trust preferred securities at US$1,000 per security. Net proceeds received were
US$841 million, £514 million. These securities have no maturity date and are not redeemable at the option of the holders at any time. The securities may, with the consent of the
FSA, be redeemed, in whole or in part, by the issuer on 1 July 2013 or on any interest payment date thereafter. They may also be redeemed in whole, but not in part, upon the
occurrence of certain tax and regulatory events. Interest on the securities is payable half yearly in arrears at a fixed annual rate of 4.709% beginning on 31 December 2003.
In December 2003, a wholly-owned subsidiary of the Group, issued 650,000 Series II non-cumulative trust preferred securities at US$1,000 per security. Net proceeds received
were US$644 million, £369 million. These securities have no maturity and are not redeemable at the option of the holders at any time. The securities may, with the consent of the FSA,
be redeemed, in whole or in part, by the issuer on 3 January 2034 or any interest payment date thereafter. They may also be redeemed in whole, but not in part, upon the occurrence of
certain tax and regulatory events. Interest on the securities is paid half yearly in arrears at a fixed annual rate of 6.425% beginning on 31 December 2003.
(5) Minority interests in the consolidated profit and loss account includes £127 million (2002 – £67 million; 2001 – £50 million) in respect of non-equity interests.
33 Share capital
Allotted, called up and fully paid Authorised
1 January Issued during Other movement 31 December 31 December 31 December
2003 the year during the year 2003 2003 2002
£m £m £m £m £m £m
Equity shares
Ordinary shares of 25p 725 15 — 740 1,020 1,020
Non-voting deferred shares of £0.01* — — 27 27 323 323
Total equity share capital 725 15 27 767 1,343 1,343
Preference shares and Additional Value Shares
Additional Value Shares of £0.01* 27 — (27) — 27 27
Non-cumulative preference shares of US$0.01 1 — — 1 2 2
Non-cumulative convertible preference shares of US$0.01 ——————
Non-cumulative preference shares of 0.01 ——————
Non-cumulative convertible preference shares of 0.01 ——————
Non-cumulative convertible preference shares of £0.25 ————225225
Non-cumulative convertible preference shares of £0.01 ——————
Cumulative preference shares of £1 1 — — 1 1 1
Non-cumulative preference shares of £1 ————300300
Total non-equity share capital 29 — (27) 2 555 555
Total share capital 754 15 — 769 1,898 1,898
*In December 2003, the AVS were converted to non-voting deferred shares of £0.01 each.