HSBC 2014 Annual Report Download - page 174

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HSBC BANK PLC
Notes on the Financial Statements (continued)
172
Subordinated borrowings of the group
Carrying amount
2014
2013
£m
£m
€1,000m
Floating Rate Subordinated Loan 2017
779
833
£500m
4.75% Callable Subordinated Notes 20201
514
524
€500m
Callable Subordinated Floating Rate Notes 2020
377
396
US$1,450m
Floating Rate Subordinated Loan 2021
930
877
US$450m
Subordinated Floating Rate Notes 2021
289
272
US$275m
Floating Rate Subordinated Loan 2021
176
166
£350m
5% Callable Subordinated Notes 20232
388
384
£300m
6.5% Subordinated Notes 2023
299
299
€650m
Floating Rate Subordinated Loan 2023
507
542
US$300m
7.65% Subordinated Notes 2025
256
230
€260m
Floating Rate Subordinated Loan 2029
203
-
£350m
5.375% Callable Subordinated Step-up Notes 20303
398
364
£500m
5.375% Subordinated Notes 2033
581
535
€900m
7.75% Non-cumulative Subordinated Notes 2040
701
750
£225m
6.25% Subordinated Notes 2041
224
224
£600m
4.75% Subordinated Notes 2046
593
593
£700m
5.844% Non-cumulative Step-up Perpetual Preferred Securities4
700
700
£300m
5.862% Non-cumulative Step-up Perpetual Preferred Securities5
330
323
US$750m
Undated Floating Rate Primary Capital Notes
481
454
US$500m
Undated Floating Rate Primary Capital Notes
321
302
US$300m
Undated Floating Rate Primary Capital Notes (Series 3)
192
181
US$2,862m
Floating Rate Perpetual Subordinated Debt
1,836
1,732
US$1,000m
Floating Rate Subordinated Loan 20206
–
605
€250m
Floating Rate Subordinated Loan 20216
–
208
£350m
Floating Rate Subordinated Loan 20226
–
350
£390m
6.9% Subordinated Loan 20336
–
390
US$977m
Floating Rate Subordinated Loan 20406
–
591
Other subordinated liabilities less than £100m
639
728
11,714
13,553
1 In September 2015 the interest rate changes to three month sterling LIBOR plus 0.82%.
2 In March 2018 the interest rate changes to become the rate per annum which is the sum of the gross redemption yield of the then
prevailing five year UK gilt plus 1.80%.
3 In November 2025 the interest rate changes to three month sterling LIBOR plus 1.50%.
4 In November 2031 the distribution rate changes to six month sterling LIBOR plus 1.76%.
5 In April 2020 the distribution rate changes to six month sterling LIBOR plus 1.85%.
6 In December 2014 HSBC Bank plc repaid five existing subordinated loans provided by HSBC Holdings plc and issued two new GBP
denominated Additional Tier 1 (AT1) capital instruments which are accounted for as “other equity instruments” in Note 32.
Footnotes 1 to 5 all relate to instruments that are redeemable at the option of the issuer on the date of the change in the interest or
distribution rate, and on subsequent rate reset and payment dates in some cases, subject to prior consent of the Prudential Regulation
Authority.
Subordinated liabilities rank behind senior obligations and generally count towards the capital base of the group. Where
applicable, capital securities may be called and redeemed by the group subject to prior notification to the PRA and, where
relevant, the consent of the local banking regulator. If not redeemed at the first call date, coupons payable may step-up
or become floating rate based on interbank rates.
Interest rates on the floating rate capital securities are generally related to interbank offered rates. On the remaining
capital securities, interest is payable at fixed rates of up to 7.75%.