Barclays 2014 Annual Report Download - page 320

318 I Barclays PLC Annual Report 2014 barclays.com/annualreport
Notes to the financial statements
Capital instruments, equity and reserves
30 Subordinated liabilities continued
Repayment
Those Notes with a call date are repayable at the option of the issuer, on conditions governing the respective debt obligations, some in whole or in
part, and some only in whole. The remaining dated loan capital outstanding at 31 December 2014 is redeemable only on maturity, subject in
particular cases to provisions allowing an early redemption in the event of certain changes in tax law, or to certain changes in legislation or
regulations.
Any repayments prior to maturity require, in the case of the Company and the Bank, the prior approval of the PRA, or in the case of the overseas
issues, the approval of the local regulator for that jurisdiction and of the PRA in certain circumstances.
There are no committed facilities in existence at the balance sheet date which permit the refinancing of debt beyond the date of maturity.
The other capital issued by Barclays Kenya, Botswana and Zambia includes amounts of £6m (2013: £14m) issued by Barclays Botswana that are
convertible. These are repayable at the option of the issuer, prior to maturity, on conditions governing the respective debt obligations, some in
whole or in part and some only in whole.
Other
The 7.625% Contingent Capital Notes will be automatically transferred from investors to Barclays PLC (or another entity within the Group) for nil
consideration in the event the Barclays PLC consolidated CRD IV Common Equity Tier 1 (CET 1) ratio (FSA October 2012 transitional statement)
falls below 7.0%.
The 7.75% Contingent Capital Notes will be automatically written-down and investors will lose their entire investment in the notes in the event the
Barclays PLC consolidated CRD IV Common Equity Tier 1 (CET 1) ratio (FSA October 2012 transitional statement) falls below 7.0%.
31 Ordinary shares, share premium, and other equity
Called up share capital, allotted and fully paid
Number
of shares
m
Ordinary
shares
£m
Share
premium
£m
Total share
capital and
share
premium
£m
Other
equity
instruments
£m
As at 1 January 2014 16,113 4,028 15,859 19,887 2,063
Issued to staff under share incentive plans 320 81 691 772 –
Issuances relating to Scrip Dividend Programme 65 16 134 150 –
AT1 equity issuance – – – – 2,263
Other movements – – – – (4)
As at 31 December 2014 16,498 4,125 16,684 20,809 4,322
As at 1 January 2013 12,243 3,061 9,416 12,477 –
Issued to staff under share incentive plans 257 63 727 790 –
Warrants exercised 379 95 655 750 –
Rights issue 3,219 805 5,025 5,830 –
Issuances relating to Scrip Dividend Programme 15 4 36 40 –
AT1 equity issuance – – – – 2,063
As at 31 December 2013 16,113 4,028 15,859 19,887 2,063
Called up share capital
Called up share capital comprises 16,498m (2013: 16,113m) ordinary shares of 25p each. The increase was due to the issuance of shares under
employee share schemes and the Barclays PLC Scrip Dividend Programme.
Share repurchase
At the 2014 AGM on 24 April 2014, Barclays PLC was authorised to repurchase 1,635m of its ordinary shares of 25p. The authorisation is effective
until the AGM in 2015 or the close of business on 30 June 2015, whichever is the earlier. No share repurchases were made during either 2014 or
2013.
Other equity instruments
Other equity instruments of £4,322m (2013: £2,063m) include Additional Tier 1 (AT1) securities issued by Barclays PLC during 2013 and 2014.
During 2013, there were two separate issuances of Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities, with principal
amounts of $2bn and €1bn. In 2014, there were three issuances of Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities,
with principal amounts of $1.2bn, €1.1bn and £0.7bn. The 2014 AT1 securities were issued as part of an exchange of £1,527m of Barclays Bank
PLC preference shares (held as non-controlling interests for Barclays PLC) and £607m of subordinated debt instruments (Tier 1 Notes and Reserve
Capital Instruments).
The exchange exercise involved Barclays PLC issuing AT1 securities to investors in exchange for Barclays Bank PLC preference shares and Barclays
Bank PLC subordinated debt instruments held by the same investors. As part of the exercise, Barclays Bank PLC issued three corresponding AT1
instruments to Barclays PLC. Upon completion of the exercise, the preference shares and subordinated debt instruments were cancelled by
Barclays Bank PLC.
The AT1 securities are perpetual securities with no fixed maturity and qualify as AT1 instruments under CRD IV.