As detailed in the following tables, holders of subordinated debt in the covered institutions have experienced significant burden sharing which reduced the amount of State support that has been required by them. As set out in the tables, several of the institutions have carried out Liability Management Exercises (LMEs) in which their subordinated debt has been subject to buy-backs at very significant discounts. The Deputy will also be aware as part of the Joint Programme agreed with the EU and IMF at the end of November last, the Government is committed to achieving further burden sharing with holders of subordinated debt over the period of the programme. In line with the terms of the agreement and my Statement on Banking in September 2010 this will be achieved through deeply discounted LMEs or, if necessary, and subject to the provisions of the Credit Institutions Stabilisation Act enacted late last year by legislative means. The information requested by the Deputy is set out in the tables following:
|
Allied Irish Banks Capital Qualifying Securities
|
|
Market value of subordinated debt
|
Capital generated
|
|
€m
|
€m
|
€m
|
|
Subordinated Debt at 30 September 2008
|
6,247
|
4,347
|
Nil
|
|
Subordinated Debt outstanding at 7 January 2011
|
4,775
|
1,246
|
Nil
|
|
Subordinated Debt bought back or which matured between 29 September 2008 and 7 Jan 2011 at full book value
|
No maturities or buy backs
|
Nil
|
Nil
|
|
Subordinated Debt bought back as part of an LME in the period 30 Sept 2008 to 7 Jan 2011*
|
4,586
|
3,053*
|
1,533*
|
|
|
|
(The above are subject to Currency fluctuations)
|
*Market Value and Capital generated adjusted for €13m of costs.
|
Anglo Irish Bank
|
€m
|
Indicative Market Price of subordinated debt
|
Capital generated€m
|
|
Subordinated Debt at 30 September 2008
|
€4,850 (€Equivalent)
|
€ Lower Tier 2 73/81
|
Nil
|
|
$ Lower Tier 2 58/65
|
|
|
£ Upper Tier 2 56/58
|
|
|
Tier 1 30/40
|
|
|
Subordinated Debt outstanding at 7 January 2011
|
* €768 (€Equivalent)
|
N/A — illiquid
|
Nil
|
|
(US PP USD200mio
|
|
|
Lower Tier 2 last traded at 25)
|
|
|
Subordinated Debt bought back or which matured between 29 September 2008 and 7 Jan 2011 at full book value
|
€0 — No Subordinated debt bought-back from the external market at par.
|
July 2009
|
Nil
|
|
€ Lower Tier 2 54/56
|
|
|
£ Upper Tier 2 36/38
|
|
|
Tier 1 26/28
|
|
|
October 2010
|
|
|
€ Lower Tier 2 24/28
|
|
|
£ Upper Tier 2 8/12
|
|
|
Tier 1 5/8
|
|
|
Subordinated Debt bought back as part of an LME in the period 30 Sept 2008 to 7 Jan 2011
|
€4,100
|
July 2009
|
2009 LME: €1,800 equity gain.
|
|
(€Equivalent)
|
€ Lower Tier 2 54/56
|
|
|
2009 LME Prices:
|
£ Upper Tier 2 36/38
|
|
|
Lower Tier 2 bought back at 55
|
Tier 1 26/28
|
|
|
Upper Tier 2 bought back at 37
|
|
|
|
Tier 1 bought back at 27
|
|
|
|
|
October 2010
|
2010 LME: €1,600 equity gain. Note this number is draft and unaudited (excludes tax, regulatory and other accounting adjustments)
|
|
2010 LME Prices:
|
€ Lower Tier 2 24/28
|
|
Lower Tier 2 exchanged at 20 — clean up call 1 cent per €1,000
|
£ Upper Tier 2 8/12
|
|
Upper Tier 2 & Tier 1 Consent fee of 5
|
Tier 1 5/8
|
Notes:
Please note exchanges rates as at 31 December 2010 have been used where possible in order to provide a corresponding EUR equivalent.
*Included in the total figure of €0.768bn of subordinated debt is the sum of €0.348bn which relates to 300,000 Non-Cumulative Preference Shares.
The inclusion of these preference shares in the bank's subordinated debt is required by accounting rules notwithstanding that they are now owned by the Minister as they remain technically a debt due to the shareholder on a winding up, albeit one ranking after all other debtors.
|
Bank of Ireland
|
|
Market value of subordinated debt
|
Capital generated
|
|
€m
|
€m
|
€m
|
|
Subordinated Debt at 30 September 2008
|
8,474
|
Nil
|
Nil
|
|
Subordinated Debt outstanding at 7 January 2011
|
2,808
|
1,346
|
Nil
|
|
Subordinated Debt bought back or which matured between 29 September 2008 and 7 Jan 2011 at full book value
|
Maturity (1,350)
|
Nil
|
Nil
|
|
New Issues (as part of LM)
|
|
|
|
1,345
|
|
|
|
Subordinated Debt bought back as part of an LME in the period 30 Sept 2008 to 7 Jan 2011
|
5,692
|
3,293
|
2,533*
|
*Gain includes unwind of hedge adjustments.
|
EBS Building Society
|
|
Market value of subordinated debt
|
Capital generated
|
|
€m
|
€m
|
€m
|
|
Subordinated Debt at 30 September 2008
|
217.5
|
Indicative Market Value Range (EBS Treasury) €141m to €152m
|
Nil
|
|
Subordinated Debt outstanding at 7 January 2011
|
213.1
|
Indicative Market Value Range (EBS Treasury) €64m to €75m
|
Nil
|
|
Subordinated Debt bought back or which matured between 29 September 2008 and 7 Jan 2011 at full book value
|
Nil
|
Nil
|
Nil
|
|
Subordinated Debt bought back as part of an LME in the period 30 Sept 2008 to 7 Jan 2011
|
Nil
|
Nil
|
Nil
|
|
Irish Life & Permanent
|
Nominal Amount
|
Market value of subordinated debt
|
Capital generated
|
|
€m
|
€m
|
€m
|
|
Subordinated Debt at 30 September 2008
|
1,348
|
1,525
|
Nil
|
|
Subordinated Debt outstanding at 7 January 2011
|
1,467
|
765
|
Nil
|
|
Subordinated Debt bought back or which matured between 29 September 2008 and 7 Jan 2011 at full book value
|
Nil
|
Nil
|
Nil
|
|
Subordinated Debt bought back as part of an LME in the period 30 Sept 2008 to 7 Jan 2011
|
Nil
|
Nil
|
Nil
|
|
Irish Nationwide Building Society
|
Nominal Amount
|
Market value of subordinated debt
|
Capital generated
|
|
€m
|
€m
|
€m
|
|
Subordinated Debt at 30 September 2008
|
316
|
188.06
|
Nil
|
|
Subordinated Debt outstanding at 7 January 2011
|
171
|
31.6
|
Nil
|
|
Subordinated Debt bought back or which matured between 29 September 2008 and 7 Jan 2011 at full book value
|
Nil
|
Nil
|
Nil
|
|
Subordinated Debt bought back as part of an LME in the period 30 Sept 2008 to 7 Jan 2011
|
267
|
Nil
|
120
|
