Barclays 2004 Annual Report Download - page 166

Notes to the accounts
For the year ended 31st December 2004
30 Dated loan capital (continued)
None of the Group’s dated loan capital is secured. The debt obligations of the Bank, Barclays Spain, BBB and Barclays Zambia rank ahead of the
interests of holders of their equity. Dated loan capital of the Bank, Barclays Spain, BBB and Barclays Zambia has been issued on the basis that the
claims thereunder are subordinated to the respective claims of their depositors and other unsecured unsubordinated creditors.
In accordance with the Barclays Group Reorganisation Act 2002, the 5.25% Subordinated Notes 2011, the Step-up Callable Floating Rate
Subordinated Bonds 2012, the 10.125% Subordinated Notes 2017 and the 9.5% Subordinated Bonds 2021 of Woolwich plc were transferred
to the Bank by operation of law on 1st December 2003 and accordingly the Bank has become the obligor for these issues from that date.
The loan capital of Barclays Spain was reclassified from Other liabilities to Dated loan capital during 2004.
Interest
Notes
(a) The interest rates on these Notes are fixed for the life of those issues.
(b) These Notes bear interest at rates fixed periodically in advance based on London or European interbank rates.
(c) These Notes bear interest at rates fixed periodically in advance based on Sydney bill of exchange rates.
(d) These Notes bear a fixed rate of interest until 2006. After that date, in the event that the Notes are not redeemed, the Notes will bear interest
at rates fixed periodically in advance based on London interbank rates.
(e) These Notes bear a fixed rate of interest until 2008. After that date, in the event that the Notes are not redeemed, the Notes will bear interest
at rates fixed periodically in advance based on London interbank rates.
(f ) These Notes bear a fixed rate of interest until 2008. After that date, in the event that the Notes are not redeemed, the Notes will bear interest
at rates fixed periodically in advance based on Sydney Bill of exchange rates.
(g) These Notes bear a fixed rate of interest until 2012. After that date, in the event that the Notes are not redeemed, the coupon will be reset to
a fixed margin over a reference gilt rate for a further period of five years.
(h) These Notes bear a fixed rate of interest until 2014. After that date, in the event that the Notes are not redeemed, the Notes will bear interest
at rates fixed periodically in advance based on European interbank rates.
(i) This Loan bears a fixed rate of interest based on a US Dollar principal amount, but the interest payments have been swapped, resulting in a
Yen interest rate payable which is fixed periodically in advance based on London interbank rates.
(j) The Bank has swapped the proceeds of these Notes for euro under a swap, the duration of which matches the term of the Notes. The
payment obligations of the Bank under this swap are subordinated so that the claims against the Bank in respect of this swap rank pari passu
with claims against the Bank in respect of its dated loan capital. The sterling value of these Notes in the figures set out above takes into
account this subordinated swap.
(k) The Bank has swapped US$250m of the proceeds of these Notes for euro under a swap, the duration of which matches the term of the Notes.
The payment obligations of the Bank under this swap are subordinated so that the claims against the Bank in respect of this swap rank pari
passu with claims against the Bank in respect of its dated loan capital. The sterling value of these Notes in the figures set out above takes into
account this subordinated swap.
(l) The Bank may defer the payment of interest and principal on these Notes in the event that the Financial Services Authority has required or
requested the Bank to make such a deferral.
(m) 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.
(n) Holders of these Notes have certain rights to call for the redemption of their holdings.
(o) These Notes bear interest at rates fixed periodically in advance based on the Bank of Botswana Certificate Rate. All of these Notes will be
compulsorily converted to Preference Shares of BBB, having a total par value equal in sum to the principal amount of Notes outstanding at
the time of conversion, should BBB experience pre-tax losses in excess of its retained earnings and other capital surplus accounts.
(p) These Notes bear interest at rates fixed periodically in advance based on the Bank of Zambia Treasury Bill rate. All of these Notes will be compulsorily
converted to Preference Shares of Barclays Zambia, having a total par value equal in sum to the principal amount of Notes outstanding at the time of
conversion, should Barclays Zambia experience pre-tax losses in excess of its retained earnings and other capital surplus accounts.
Interest payable on loan capital with a final maturity within five years amounted to £23.8m (2003: £10.7m, 2002: £28m).
The 7.4% Subordinated Notes 2009 (the ‘7.4% Notes’) issued by the Bank have been registered under the US Securities Act of 1933. All other issues
of dated loan capital by the Bank, Barclays Spain, BBB and Barclays Zambia, which were made in non-US markets, have not been so registered. With
respect to the 7.4% Notes, the Bank is not obliged to make (i) a payment of interest on any interest payment date unless a dividend is paid on any
class of share capital and (ii) a payment of principal until six months after the respective maturity date with respect to such Notes.
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