RBS 2011 Annual Report Download - page 390

388 RBS Group 2011
25 Subordinated liabilities continued
2011 2010 2009
£m £m £m
First Active plc
£20 million 11.75% perpetual tier two capital 26 26 26
€38 million 11.375% perpetual tier two capital 48 50 51
£1.3 million floating rate perpetual tier two capital 2 2 2
RBS NV and subsidiaries
€1,000 million 4.31% perpetual Bermudan callable subordinated tier 1 notes (callable March 2016) (7) —
— 834
€800 million 10% fixed perpetual mandatory convertible tier 1 notes 2099 (7) — — 716
€967 million 10% fixed perpetual mandatory convertible tier 1 notes 2072 (7) — — 866
€833 million 10% fixed perpetual mandatory convertible tier 1 notes 2073 (7) —
— 746
2,558 2,552 8,164
Notes:
(1) Partially repurchased following completion of the exchange and tender offers in April 2009.
(2) Partially repurchased following completion of the exchange and tender offers in May 2010.
(3) On-lent to The Royal Bank of Scotland plc on a subordinated basis.
(4) The company can satisfy interest payment obligations by issuing sufficient ordinary shares to appointed Trustees to enable them, on selling these shares, to settle the interest payment.
(5) Guaranteed by the company.
(6) Exchangeable at the option of the issuer into 8.392% (gross) non-cumulative preference shares of £1 each of National Westminster Bank Plc at any time.
(7) Transferred to the Dutch State on legal separation of ABN AMRO Holding N.V. in 2010.
(8) Except as stated above, claims in respect of the Group's undated loan capital are subordinated to the claims of other creditors. None of the Group's undated loan capital is secured.
(9) In the event of certain changes in tax laws, undated loan capital issues may be redeemed in whole, but not in part, at the option of the Group, at the principal amount thereof plus accrued interest,
subject to prior regulatory approval.
(10) Interest on all floating rate subordinated notes is calculated by reference to market rates.
Preference shares
2011 2010 2009
£m £m £m
The Royal Bank of Scotland Group plc (1)
Non-cumulative preference shares of US$0.01
Series F US$156 million (2010 - US$156 million; 2009 - US$200 million) 7.65%
(redeemable at option of issuer) (2) 101 101 123
Series H US$242 million (2010 - US$242 million; 2009 - US$300 million) 7.25%
(redeemable at option of issuer) (2) 157 156 185
Series L US$751 million (2010 - US$751 million; 2009 - US$850 million) 5.75%
(redeemable at option of issuer) (2) 485 484 524
Non-cumulative convertible preference shares of US$0.01
Series 1 US$65 million (2010 - US$65 million; 2009 - US$1,000 million) 9.118%
(redeemable at option of issuer) (3) 43 43 630
Non-cumulative convertible preference shares of £0.01
Series 1 £15 million (2010 - £15 million; 2009 - £200 million) 7.387% (redeemable at option of issuer) (3) 15
15 199
Cumulative preference shares of £1
£0.5 million 11% and £0.4 million 5.5% (non-redeemable) 1 11
National Westminster Bank Plc
Non-cumulative preference shares of £1
Series A £140 million 9% (non-redeemable) 145 144 145
Non-cumulative preference shares of US$25
Series C US$246 million (2010 - US$246 million; 2009 - US$300 million) 7.7628% (2,4) 169
168 193
1,116 1,112 2,000
Notes:
(1) Further details of the contractual terms of the preference shares are given in Note 27.
(2) Partially repurchased following completion of the exchange and tender offers in May 2010.
(3) Partially converted into ordinary shares in the company in 2010.
(4) Series C preference shares each carry a gross dividend of 8.625% inclusive of associated tax credit. Redeemable at the option of the issuer at par.
Notes on the consolidated accounts continued