RBS 2012 Annual Report Download - page 441

RBS GROUP 2012
439
Preference shares
2012 2011 2010
Capital
treatment £m £m £m
The Royal Bank of Scotland Group plc (1)
Non-cumulative preference shares of US$0.01
Series F US$156 million 7.65% (callable any time from March 2007) (2) Tier 1 97 101 101
Series H US$242 million 7.25% (callable any time from March 2004) (2) Tier 1 150 157 156
Series L US$751 million 5.75% (callable any time from October 2009) (2) Tier 1 465 485 484
Non-cumulative convertible preference shares of US$0.01
Series 1 US$65 million 9.118% (callable any time from March 2010) (3) Tier 1 41 4343
Non-cumulative convertible preference shares of £0.01
Series 1 £15 million 7.387% (callable any time from December 2010) (3) Tier 1 15 15 15
Cumulative preference shares of £1
£0.5 million 11% and £0.4 million 5.5% (not callable) Upper Tier 2 1 11
National Westminster Bank Plc
Non-cumulative preference shares of £1
Series A £140 million 9% (not callable) Tier 1 145 145 144
Non-cumulative preference shares of US$25
Series C US$246 million 7.7628% (callable quarterly from April 2002) (2,4) Tier 1 161 169 168
1,075 1,116 1,112
Notes:
(1) Further details of the contractual terms of the preference shares are given in Note 26.
(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.
Trust preferred securities
2012 2011 2010 Capital
treatment £m £m £m
€391 million 6.467% (callable quarterly from June 2012) (1) Tier 1 319 340 339
US$486 million 6.8% (callable quarterly from March 2008) (1) Tier 1 302 309 289
US$318 million 4.709% (callable quarterly from July 2013) (1,2) Tier 1 199 210 190
US$394 million 6.425% (callable quarterly from January 2034) (1) Tier 1 365 382 291
RBS NV and subsidiaries (3)
US$1,285 million 5.90% Trust Preferred V (callable any time from July 2008) (3) Tier 1 713684 633
US$200 million 6.25% Trust Preferred VI (callable any time from September 2008) Tier 1 112 108 100
US$1,800 million 6.08% Trust Preferred VII (callable any time from February 2009) Tier 1 999 958 889
3,009 2,991 2,731
Notes:
(1) The trust preferred securities issued by subsidiaries have no maturity date and are not redeemable at the option of the holders at any time. These securities may, with the consent of the UK Financial
Services Authority, be redeemed by the issuer on the dates specified above 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. Dividends are non-cumulative and may, subject to the restrictions described in (5) below, be paid provided distributable profits are sufficient unless payment would
breach the capital adequacy requirements of the UK Financial Services Authority. Distributions are not made if dividends are not paid on any series of the company’s non-cumulative preference
shares. The company classifies its obligations to these subsidiaries as dated loan capital.
(2) Partially repurchased following completion of the exchange and tender offers in May 2010.
(3) Dividends are non-cumulative. They cannot be declared if RBS Holdings N.V. has not paid dividends on any parity securities. Distributions must be made, subject to the restrictions described in (4)
below, if RBS Holdings N.V. pays a dividend on its ordinary shares or on its parity securities or redeems or repurchases such securities.
(4) The trust preferred securities are subject to restrictions on dividend payments agreed with the European Commission (see page 434).