Barclays 2006 Annual Report Download - page 201

Barclays PLC
Annual Report 2006 197
Financial statements
3
32 Subordinated liabilities (continued)
Interest
Notes
(a) These TONs bear a fixed rate of interest until 2032. After that date, in the event that the TONs are not redeemed, the TONs will bear interest at
rates fixed periodically in advance, based on London interbank rates.
(b) These RCIs bear a fixed rate of interest until 2036. After that date, in the event that the RCIs are not redeemed, the RCIs will bear interest at rates
fixed periodically in advance, based on London interbank rates.
(c) These RCIs bear a fixed rate of interest until 2016. After that date, in the event that the RCIs are not redeemed, the RCIs will bear interest at rates
fixed periodically in advance, based on London interbank rates.
(d) These Notes 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 coupon will be reset to a
fixed margin over a reference gilt rate for a further period of five years.
(f) These Notes bear a fixed rate of interest until 2021. After that date, in the event that the Notes are not redeemed, the Notes will be reset to a
fixed margin over a reference gilt rate for a further period of five years.
(g) The interest rate on these Notes is fixed for the life of this issue.
(h) These Notes bear a fixed rate of interest until 2020. 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.
(i) These Notes bear a fixed rate of interest until 2015. 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.
(j) These Notes bear a fixed rate of interest until 2017. 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.
(k) These Notes bear a fixed rate of interest until 2027. 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.
(l) These Notes bear a fixed rate of interest until 2009. 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.
(m) These Loans bear a fixed rate of interest until 2028 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. After that date, in the event that
the Loans are not redeemed, the Loans will bear Yen interest rates fixed periodically in advance, based on London interbank rates.
The Bank is not obliged to make a payment of interest on its Undated Notes and Loans excluding the 9.25% Perpetual Subordinated Bonds if, in the
preceding six months, a dividend has not been declared or paid on any class of shares of Barclays PLC or, in certain cases, any class of preference
shares of the Bank. The Bank is not obliged to make a payment of interest on its 9.25% Perpetual Subordinated Bonds if, in the immediately
preceding 12 months interest period, a dividend has not been paid on any class of its share capital. Interest not so paid becomes payable in each case
if such a dividend is subsequently paid or in certain other circumstances. During the year, the Bank declared and paid dividends on its ordinary shares
and on all classes of preference shares.
No payment of principal or any interest may be made unless the Bank satisfies a specified solvency test.
The Bank may elect to defer any payment of interest on the RCIs ((b) and (c) above). Any such deferred payment of interest must be paid on the
earlier of (i) the date of redemption of the RCIs, and (ii) the coupon payment date falling on or nearest to the tenth anniversary of the date of deferral
of such payment. Whilst such deferral is continuing, neither the Bank nor Barclays PLC may declare or pay a dividend, subject to certain exceptions,
on any of its ordinary shares or Preference Shares.
The Bank may elect to defer any payment of interest on the TONs if it determines that it is, or such payment would result in it being, in
non-compliance with capital adequacy requirements and policies of the FSA. Any such deferred payment of interest will only be payable on a
redemption of the TONs. Until such time as the Bank next makes a payment of interest on the TONs, neither the Bank nor Barclays PLC may
(a) declare or pay a dividend, subject to certain exceptions, on any of their respective ordinary shares or Preference Shares, or make payments
of interest in respect of the Bank’s Reserve Capital Instruments and (b) certain restrictions on the redemption, purchase or reduction of their
respective share capital and certain other securities also apply.