Barclays 2015 Annual Report Download - page 319

home.barclays/annualreport Barclays PLC Annual Report 2015 I 317
30 Subordinated liabilities continued
Dated loan capital
Dated loan capital is issued by the Company, the Bank and respective subsidiaries for the development and expansion of their business and to
strengthen their respective capital bases. The principal terms of the dated loan capital are described below:
Subordination
Dated loan capital issued by the Company ranks behind the claims against the Company of unsecured unsubordinated creditors but before the
claims of the holders of its equity.
All dated loan capital issued by the Bank 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 its equity. The dated loan capital issued by other subsidiaries is similarly
subordinated.
Interest
Interest on the Floating Rate Notes is fixed periodically in advance, based on the related interbank or local central bank rates.
Interest on the 7.75% Contingent Capital Notes and the 2.625% Fixed Rate Subordinated Callable Notes are fixed until the call date. After the
respective call dates, in the event that they are not redeemed, the interest rates will be reset and fixed until maturity based on a market rate.
Repayment
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 31 December 2015 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 to certain changes in legislation or
regulations.
Any repayments prior to maturity require, in the case of the Company and the Bank, the prior approval of the PRA, or in the case of the overseas
issues, the approval of the local regulator for that jurisdiction and of the PRA in certain circumstances.
There are no committed facilities in existence at the balance sheet date which permit the refinancing of debt beyond the date of maturity.
Other
The 7.625% Contingent Capital Notes will be automatically transferred from investors to Barclays PLC (or another entity within the Group) for nil
consideration in the event the Barclays PLC consolidated CRD IV CET1 ratio (FSA October 2012 transitional statement) falls below 7.0%.
The 7.75% Contingent Capital Notes will be automatically written-down and investors will lose their entire investment in the notes in the event the
Barclays PLC consolidated CRD IV CET1 ratio (FSA October 2012 transitional statement) falls below 7.0%.
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