Barclays 2010 Annual Report Download - page 227

23 Subordinated liabilities continued
Dated loan capital
Dated loan capital is issued by the Bank for the development and expansion of the Group’s business and to strengthen its capital base; by Barclays Bank
Spain SA (Barclays Spain), Barclays Bank of Botswana Ltd (Barclays Botswana), Barclays Bank Zambia PLC (Barclays Zambia) and Barclays Bank of Kenya
(Barclays Kenya) to enhance their respective capital bases; and by Absa and Barclays Bank of Ghana Ltd (Barclays Ghana) for general corporate purposes.
The principal terms of the dated loan capital are described below:
Security
None of the Groups dated loan capital is secured.
Subordination
All dated loan capital ranks behind the claims against the bank of depositors and other unsecured unsubordinated creditors but before the claims of the
undated loan capital and the holders of their equity. The dated loan capital issued by subsidiaries, are similarly subordinated.
Interest
Interest on the floating rate Notes are fixed periodically in advance, based on the related interbank or local central bank rates.
All other non-convertible Notes except the 10.125% Subordinated Notes 2017 are generally fixed interest for the life of the issue, but some are reset to
a floating rate after a fixed period, with varying interest rate terms. The 10.125% Subordinated Notes 2017, if not called in 2012, will bear interest at a rate
fixed in advance for a further period of 5 years.
The 5.14% Lower Tier 2 Notes were registered under the US Securities Act of 1933. All other issues of dated loan capital have been made in the euro
currency market, local markets and/or under Rule 144A.
Repayment terms
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 31st December 2010 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, in the case of Barclays Botswana and Barclays Zambia,
to certain changes in legislation or regulations.
Any repayments prior to maturity require, in the case of the Bank, the prior notification to the FSA, or in the case of the overseas issues, the approval
of the local regulator for that jurisdiction.
There are no committed facilities in existence at the balance sheet date which permit the refinancing of debt beyond the date of maturity.
24 Provisions
Onerous
contracts
£m
Redundancy
and re-
structuring
£m
Undrawn
contractually
committed
facilities and
guarantees
provided
£m
Sundry
provisions
£m
Total
£m
At 1st January 2010 68 162 162 198 590
Acquisitions and disposals of subsidiaries ––167
Exchange and other adjustments – – 6 12 18
Additions 36 139 118 533 826
Amounts utilised (28) (68) (8) (229) (333)
Unused amounts reversed (4) (56) (50) (53) (163)
Amortisation of discount 2–––2
At 31st December 2010 74 177 229 467 947
At 1st January 2009 50 118 109 258 535
Acquisitions and disposals of subsidiaries – (2) 1 (6) (7)
Exchange and other adjustments – 4 2 – 6
Additions 51 269 119 125 564
Amounts utilised (27) (201) (21) (142) (391)
Unused amounts reversed (8) (26) (48) (37) (119)
Amortisation of discount 2 – – – 2
At 31st December 2009 68 162 162 198 590
Provisions expected to be recovered or settled within no more than 12 months after 31st December 2010 were £658m (2009: £466m).
Included in sundry provisions are provisions in respect of litigation of £151m (2009: £27m).
Barclays PLC Annual Report 2010 www.barclays.com/annualreport10 225
Strategy Performance Risk management and governance Shareholder informationFinancial statementsAbout Barclays