RBS 2011 Annual Report Download - page 122

120 RBS Group 2011
Balance sheet management: Liquidity and funding risk continued
Long-term debt issuances
The table below shows debt securities issued by the Group with an original maturity of one year or more. The Group also executes other long-term
funding arrangements (predominantly term repurchase agreements) which are not reflected in the following tables.
2011 2010 2009
£m £m £m
Public
- unsecured 5,085 12,887 8,386
- unsecured: guaranteed — — 19,663
- secured 9,807 8,041 —
Private
- unsecured 12,414 17,450 14,895
- unsecured: guaranteed — — 15,459
- secured 500 — —
Gross issuance 27,806 38,378 58,403
Buybacks (6,892) (6,298) (7,264)
Net issuance 20,914 32,080 51,139
Key points
xIn line with the Group’s Strategic Plan, it has been an active issuer
in recent years as it improved its liquidity and funding profile.
Secured funding has increased as a proportion of total wholesale
funding more recently as market dislocation and uncertainty over
future regulatory developments have made unsecured markets less
liquid.
xAs the Group delevers, with Non-Core and GBM third party assets
decreasing and Retail & Commercial deposits increasing, net term
debt issuance decreased from £32 billion in 2010 to £21 billion in
2011. The net requirement in 2012 is not expected to exceed £10
billion as further deleveraging should cover the differences.*
xThe Group undertakes voluntary buybacks of its privately issued
debt in order to maintain client relationships and as part of its normal
market making activities. These transactions are conducted at
prevailing market rates.
The table below shows the original maturity of public long-term debt securities issued.
1-3 years 3-5 years 5-10 years >10 years Total
2011 £m £m £m £m £m
MTNs 904 1,407 1,839 935 5,085
Covered bonds — 1,721 3,280 — 5,001
Securitisations — — — 4,806 4,806
904 3,128 5,119 5,741 14,892
%of total 6 21 34 39 100
2010
MTNs 1,445 2,150 6,559 2,733 12,887
Covered bonds —1,030 1,244 1,725 3,999
Securitisations — — — 4,042 4,042
1,445 3,180 7,803 8,500 20,928
%of total 715 37 41 100
2009
MTNs 13,450 7,457 3,477 3,665 28,049
%of total 48 27 12 13 100
*unaudited
Business review Risk and balance sheet management continued