7th Nov 2005 12:20
Arbuthnot Banking Group PLC07 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 hastoday 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 beenpurchased by Merrill Lynch International and by a fund managed by DekaniaCapital Management LLC. No listing is being sought for the Notes on any stockexchange. 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'soption (subject to the consent of the Financial Services Authority) on anyinterest payment date occurring after November 2010. The Notes rank in priorityto distributions on all classes of share capital of the Company but aresubordinated in right of payment to the claims of all unsubordinated creditorsof the Company. The terms of the subordination allow the Notes to qualify asLower Tier 2 capital of the Company under the rules of the Financial ServicesAuthority. The proceeds of the issue will be used for working capital purposes and toredeem the Company's existing Floating Rate Subordinated Loan Notes 2009,totalling £7.8 million. Commenting on the issue, Henry Angest, Chairman and Chief Executive ofArbuthnot, said:- "The issue of 30-year subordinated debt is an important part of our long-termcapital planning. After repaying our existing subordinated debt, which has onlyfour years remaining to maturity, the issue will provide us with an additional£2 million of regulatory capital to support the continued growth of ourbusiness." Enquiries Arbuthnot Banking Group PLCHenry Angest, Chairman and Chief Executive Tel: 020 7012 2400Stephen Lockley, Group Finance Director Tel: 020 7012 2055Andrew Salmon, Chief Operating Officer Tel: 020 7012 2424 College Hill:Tony Friend Tel: 020 7457 2020Richard Pearson Tel: 020 7457 2020 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Arbuthnot