Manchester Building Society PIBS coupon payments (9993N)
27 September 2019 - 10:46PM
UK Regulatory
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RNS Number : 9993N
Manchester Building Society
27 September 2019
Manchester Building Society Permanent Interest Bearing Share
("PIBS") coupon payments
Manchester Building Society ('the Society') confirms that, in
line with expectations set out in the half year results
announcement on 29 August 2019, the Society will not be paying the
October 2019 coupon on the two tranches of PIBS in issue.
As set out in the half year results, as at 30 June 2019, the
Society met its Pillar 1 plus Pillar 2A requirement, but did not
meet the qualitative standards for the level of Common Equity Tier
1 ("CET 1") regulatory capital. In order to conserve capital a
distribution to PIBS holders is prohibited under the Capital
Requirements Directive IV ("CRD IV") article 141. The Board
continues to discuss and consult with the Prudential Regulation
Authority ("PRA") with regard to the capital position.
There is uncertainty over the Society's ability to make PIBS
coupon payments due after October 2019. Any further non-payment
will be announced to the market.
PIBS coupons are not cumulative so any interest payments on the
PIBS which are not paid are permanently cancelled and will not
become due at a future date.
PIBS are not protected deposits covered by the Financial
Services Compensation Scheme ("FSCS") (1)
Enquiries:
Andy Donald - Maitland
020 7379 5151
adonald@maitland.co.uk
Note (1) PIBS are not protected deposits covered by the
Financial Services Compensation Scheme (the "FSCS"). There is no
expectation of repayment of the PIBS unlike normal deposits with
the Society. PIBS are subordinated to all other liabilities of the
Society, other than liabilities in respect of Profit Participating
Deferred Shares ("PPDS"). In a liquidation of the Society the PIBS
rank behind all other creditors of the Society (other than PPDS).
In order to realise the investment in PIBS, an investor must either
sell the PIBS in the market or make a private sale.
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contact rns@lseg.com or visit www.rns.com.
END
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