Barclays 2012 Annual Report Download - page 181

The strategic report Governance Risk review Financial review Financial statements Risk management Shareholder information
Currency composition of wholesale debt
As at 31 December 2012, the proportion of wholesale funding by major currencies was as follows:
Currency composition of wholesale funds
USD
%
EUR
%
GBP
%
Other
%
Deposits from banks 11 51 30 8
Customer deposits and commercial paper 50 30 20 –
Asset backed commercial paper 78 13 9 –
Senior unsecured 27 37 16 20
Covered bonds/ABS 22 58 19 1
Subordinated liabilities 28 24 47 1
Total as at 31 December 2012 31 38 22 9
Total as at 31 December 2011 27 42 17 14
To manage cross-currency refinancing risk Barclays manages to foreign exchange cash-flow limits, which limit risk at specific maturities.
Term financing (audited)
The Group continues to attract deposits in unsecured money markets and to raise additional secured and unsecured term funding in a variety
of markets. During 2012 the Group issued approximately £28bn of term funding, comprising:
 £3.4bn equivalent of public benchmark senior unsecured debt;
 £6.2bn equivalent of net privately placed senior unsecured debt;
 £16.8bn equivalent of secured debt; and
 £1.9bn of subordinated debt.
Included within secured funding issued during 2012 is £6bn of funding raised through participation in the Bank of England’s FLS.
Subordinated debt issued during 2012 comprises a Tier 2 issue of £1.9bn equivalent of contingent capital notes which includes a write-off feature
should the Group’s Core Tier 1 or CET1 capital, as appropriate, fall below 7%.
As previously disclosed, in addition to the above issuance, Euro funding gaps in Spain and Portugal were reduced through accessing €8.2bn
of the European Central Bank’s three year LTRO in February 2012 (see page 154 for more detail of Eurozone balance sheet redenomination risk).
Funding plan
Barclays maintains a long term strategic funding plan, designed to reduce structural funding risk and optimise interest costs.
Total 2012 issuance was sufficient to cover the Group’s needs for 2012 and also to pre-fund a large portion of the Group’s needs for 2013.
The Group’s needs in 2012 were significantly lower than the £27bn of term funding maturing in that year due to the improvement in the customer
loan to deposit ratio and a reduction in legacy assets.
The Group has £18bn of term debt maturing in 2013 and a further £24bn maturing in 2014. However, with expected deposit growth and reduction
in legacy assets, funding needs are likely to be lower. The Group continues to recognise the importance of a diversified funding base, and therefore
monitors opportunities across a variety of funding markets.
barclays.com/annualreport Barclays PLC Annual Report 2012 I 179