12 Borrowings

Analysis by nature

Carrying amount
20141
£m

Coupon rate
2014
%

Fair value
20141
£m

Carrying amount
20131
£m

Coupon rate
2013
%

Fair value
20131
£m

1.

Includes accrued interest on subordinated borrowings of £36m (2013: £37m).

Subordinated borrowings

 

 

 

 

 

 

6.385% Sterling perpetual capital securities (Tier 1)

658

6.39

642

680

6.39

650

5.875% Sterling undated subordinated notes (Tier 2)

416

5.88

431

418

5.88

438

4.0% Euro subordinated notes 2025 (Tier 2)

472

4.00

482

498

4.00

531

10% Sterling subordinated notes 2041 (Tier 2)

310

10.00

424

309

10.00

417

5.5% Sterling subordinated notes 2064 (Tier 2)

588

5.50

666

Total borrowings

2,444

 

2,645

1,905

 

2,036

As at 31 December 2014, the group had in place a £1.00bn syndicated committed revolving credit facility provided by a number of its key relationship banks, £0.04bn matures in October 2017 and £0.96bn matures in October 2018. A test drawing was made under this facility during 2013. No amounts were outstanding at 31 December 2014.

6.385% Sterling perpetual capital securities

In 2007, Legal & General Group Plc issued £600m of 6.385% Sterling perpetual capital securities. Simultaneous with the issuance, the fixed coupon was swapped into six month LIBOR plus 0.94% pa. These securities are callable at par on 2 May 2017 and every three months thereafter. If not called, the coupon from 2 May 2017 will be reset to three month LIBOR plus 1.93% p.a. For regulatory purposes these securities are treated as innovative tier 1 capital.

5.875% Sterling undated subordinated notes

In 2004, Legal & General Group Plc issued £400m of 5.875% Sterling undated subordinated notes. These notes are callable at par on 1 April 2019 and every five years thereafter. If not called, the coupon from 1 April 2019 will be reset to the prevailing five-year benchmark gilt yield plus 2.33% p.a. These notes are treated as tier 2 capital for regulatory purposes.

4.0% Euro subordinated notes 2025

In 2005, Legal & General Group Plc issued €600m of 4.0% Euro dated subordinated notes. The proceeds were swapped into Sterling. The notes are callable at par on 8 June 2015 and each year thereafter. If not called, the coupon from 8 June 2015 will reset to a floating rate of interest based on prevailing three month Euribor plus 1.7% p.a. These notes mature on 8 June 2025 and are treated as tier 2 capital for regulatory purposes.

10% Sterling subordinated notes 2041

On 16 July 2009, Legal & General Group Plc issued £300m of 10% dated subordinated notes. The notes are callable at par on 23 July 2021 and every five years thereafter. If not called, the coupon from 23 July 2021 will be reset to the prevailing five-year benchmark gilt-yield plus 9.325% p.a. These notes mature on 23 July 2041 and are treated as tier 2 capital for regulatory purposes.

5.5% Sterling subordinated notes 2064

On 19 June 2014, Legal & General Group Plc issued £600m of 5.5% dated subordinated notes. The notes are callable at par on 27 June 2044 and every five years thereafter. If not called, the coupon from 27 June 2044 will be reset to the prevailing five-year benchmark gilt-yield plus 3.17% p.a. These notes mature on 27 June 2064 and are treated as tier 2 capital for regulatory purposes.