Arbuthnot Banking Group PLC
07 November 2005
7 November 2005
ARBUTHNOT BANKING GROUP PLC
ISSUE OF €15 MILLION FLOATING RATE SUBORDINATED NOTES DUE 2035
Arbuthnot Banking Group PLC ('Arbuthnot' or 'the Company') announces that it has
today issued €15 million (equivalent to £10.1 million at today's exchange rate)
of Floating Rate Subordinated Notes due 2035 ('the Notes'). The Notes have been
purchased by Merrill Lynch International and by a fund managed by Dekania
Capital Management LLC. No listing is being sought for the Notes on any stock
exchange.
The Notes bear interest at 3% over the rate for three-month deposits in Euros.
They are repayable in full in August 2035 and may be redeemed at the Company's
option (subject to the consent of the Financial Services Authority) on any
interest payment date occurring after November 2010. The Notes rank in priority
to distributions on all classes of share capital of the Company but are
subordinated in right of payment to the claims of all unsubordinated creditors
of the Company. The terms of the subordination allow the Notes to qualify as
Lower Tier 2 capital of the Company under the rules of the Financial Services
Authority.
The proceeds of the issue will be used for working capital purposes and to
redeem the Company's existing Floating Rate Subordinated Loan Notes 2009,
totalling £7.8 million.
Commenting on the issue, Henry Angest, Chairman and Chief Executive of
Arbuthnot, said:-
'The issue of 30-year subordinated debt is an important part of our long-term
capital planning. After repaying our existing subordinated debt, which has only
four years remaining to maturity, the issue will provide us with an additional
£2 million of regulatory capital to support the continued growth of our
business.'
Enquiries
Arbuthnot Banking Group PLC
Henry Angest, Chairman and Chief Executive Tel: 020 7012 2400
Stephen Lockley, Group Finance Director Tel: 020 7012 2055
Andrew Salmon, Chief Operating Officer Tel: 020 7012 2424
College Hill:
Tony Friend Tel: 020 7457 2020
Richard Pearson Tel: 020 7457 2020
This information is provided by RNS
The company news service from the London Stock Exchange