TD Bank 2012 Annual Report Download - page 142

TD BANK GROUP ANNUAL REPORT 2012 FINANCIAL RESULTS140
SUBORDINATED NOTES AND DEBENTURES
NOTE 17
LIABILITY FOR PREFERRED SHARES
NOTE 18
Subordinated notes and debentures are direct unsecured obligations of
the Bank or its subsidiaries and are subordinated in right of payment
to the claims of depositors and certain other creditors. Redemptions,
The Bank classifies preferred shares that are mandatorily redeemable
or convertible into a variable number of the Bank’s common shares at
the holder’s option, as liabilities for reporting purposes. Dividend
payments on these preferred shares are recorded in interest expense.
cancellations, exchanges and modifications of subordinated deben-
tures qualifying as regulatory capital are subject to the consent and
approval of OSFI.
Preferred shares that are not mandatorily redeemable or that are
not convertible into a variable number of the Bank’s common shares at
the holder’s option, are not classified as liabilities and are presented in
Note 21, Share Capital.
Subordinated Notes and Debentures
(millions of Canadian dollars, except as noted) Earliest par Foreign October 31 October 31 November 1
Maturity date Interest rate (%) redemption date currency amount 2012 2011 2010
December 2010-August 20111 – – $ – $ – $ 3
June 20112,3 7.63 – – – 205
May 20122,4 7.00 – – 201 210
August 2014 10.05 – 150 148 148
January 2016 4.32 January 20115 – – 998
October 2016 4.87 October 20116 – – 490
November 2017 5.38 November 20127 2,444 2,467 2,493
June 2018 5.698 June 2013 898 898 898
April 2020 5.489 April 2015 875 867 855
November 2020 3.3710 November 2015 998 995 –
September 20222 4.648 September 2017 US$ 270 million 270 270 270
July 2023 5.8311 July 2018 650 650 650
May 2025 9.15 – 199 200 198
October 2104 4.9712 October 2015 784 800 800
December 2105 4.7813 December 2016 2,250 2,247 2,231
December 2106 5.7614 December 2017 1,800 1,800 1,800
Total $ 11,318 $ 11,543 $ 12,249
1
The subordinated debentures matured during fiscal 2011.
2
Obligation of a subsidiary.
3
On June 15, 2011, the subordinated notes of a subsidiary of the Bank matured.
4
On May 15, 2012, the subordinated notes of a subsidiary of the Bank matured.
5
On January 18, 2011, the Bank redeemed the subordinated notes at 100 per cent
of the principal amount. The issue qualified as Tier 2 regulatory capital.
6
On October 28, 2011, the Bank redeemed the subordinated notes at 100 per cent
of the principal amount. The issue qualified as Tier 2 regulatory capital.
7
Subsequent to year-end, on November 1, 2012, the Bank redeemed the subordi-
nated notes at 100 per cent of the principal amount. The issue qualified as Tier 2
regulatory capital.
8
For the period to but excluding the earliest par redemption date and thereafter at
a rate of 3-month Bankers’ Acceptance rate plus 1.00%.
9
For the period to but excluding the earliest par redemption date and thereafter
at a rate of 3-month Bankers’ Acceptance rate plus 2.00%.
10
For the period to but excluding the earliest par redemption date and thereafter at
a rate of 3-month Bankers’ Acceptance rate plus 1.25%.
11
For the period to but excluding the earliest par redemption date and thereafter
at a rate of 3-month Bankers’ Acceptance rate plus 2.55%.
12
For the period to but excluding the earliest par redemption date and thereafter
resets every 5 years at a rate of 5-year Government of Canada yield plus 1.77%.
13
For the period to but excluding the earliest par redemption date and thereafter
resets every 5 years at a rate of 5-year Government of Canada yield plus 1.74%.
14
For the period to but excluding the earliest par redemption date and thereafter
resets every 5 years at a rate of 5-year Government of Canada yield plus 1.99%.
REPAYMENT SCHEDULE
The aggregate remaining maturities of the Bank’s subordinated notes
and debentures are as follows:
Maturities
(millions of Canadian dollars) October 31 October 31 November 1
2012 2011 2010
Within 1 year $ – $ 201 $ 208
Over 1 year to 3 years 150 148 210
Over 3 years to 4 years – – 148
Over 4 years to 5 years – – –
Over 5 years 11,1681 11,194 11,683
Total $ 11,318 $ 11,543 $ 12,249
1
Subsequent to year-end, on November 1, 2012, the Bank redeemed all of its
outstanding 5.38% subordinated notes due November 1, 2017.