Notes to the accounts

For the year ended 31st December 2007


27 Subordinated liabilities (continued)

(b) Dated loan capital

Dated loan capital, issued by the Bank for the development and expansion of the Group’s business and to strengthen its capital base, by Barclays Bank Spain SA (Barclays Spain), Barclays Bank of Botswana Ltd (BBB), Barclays Bank Zambia PLC (Barclays Zambia) and Barclays Bank of Kenya (Barclays Kenya) to enhance their respective capital bases and by Absa and Barclays Bank of Ghana Ltd (BBG) for general corporate purposes, comprise:

2007  2006 
Notes  £m  £m 
Non-convertible 
The Bank 
7.4% Subordinated Notes 2009 (US$400m) a   200  204 
Subordinated Fixed to CMS-Linked Notes 2009 (€31m) b   23  21 
12% Unsecured Capital Loan Stock 2010  a   27  27 
5.75% Subordinated Notes 2011 (€1,000m) a   724  676 
5.25% Subordinated Notes 2011 (€250m) (ex-Woolwich plc) a   200  186 
Floating Rate Subordinated Notes 2012  –  301 
Callable Subordinated Floating Rate Notes 2012  –  44 
Step-up Callable Floating Rate Subordinated Bonds 2012 (ex-Woolwich plc) –  151 
Callable Subordinated Floating Rate Notes 2012 (US$150m) –  77 
Floating Rate Subordinated Notes 2012 (US$100m) –  51 
Capped Floating Rate Subordinated Notes 2012 (US$100m) –  51 
Floating Rate Subordinated Notes 2013 (US$1,000m) b , n   501  513 
5.015% Subordinated Notes 2013 (US$150m) a   77  77 
4.875% Subordinated Notes 2013 (€750m) a   583  540 
5.5% Subordinated Notes 2013 (DM 500m) d , n   196  179 
Floating Rate Subordinated Step-up Callable Notes 2013 (Yen 5,500m) b , n   25  24 
Floating Rate Subordinated Notes 2013 (AU$150m) c , n   67  61 
5.93% Subordinated Notes 2013 (AU$100m) e , n   44  41 
Callable Floating Rate Subordinated Notes 2015 (US$1,500m) b , n   753  767 
4.38% Fixed Rate Subordinated Notes 2015 (US$75m) a   30  37 
4.75% Fixed Rate Subordinated Notes 2015 (US$150m) a   85  76 
Floating Rate Subordinated Step-up Callable Notes 2016 (US$750m) b , n   375  382 
Callable Floating Rate Subordinated Notes 2016 (€1,250m) b , n   927  844 
Callable Floating Rate Subordinated Notes 2017 (US$500m) b , n   250  255 
10.125% Subordinated Notes 2017 (ex-Woolwich plc) k , n   111  113 
Floating Rate Subordinated Step-up Callable Notes 2017 (US$1,500m) b , n   749  – 
Floating Rate Subordinated Step-up Callable Notes 2017 (€1,500m) b , n   1,106  – 
6.05% Fixed Rate Subordinated Notes 2017 (US$2,250m) a   1,125  – 
Floating Rate Subordinated Notes 2018 (€40m) b   29  27 
Floating Rate Subordinated Notes 2019 (€50m) b   36  32 
Callable Fixed/Floating Rate Subordinated Notes 2019 (€1,000m) l   761  696 
9.5% Subordinated Bonds 2021 (ex-Woolwich plc) a   282  290 
Subordinated Floating Rate Notes 2021 (€100m) b   72  66 
Subordinated Floating Rate Notes 2022 (€50m) b   37  34 
Subordinated Floating Rate Notes 2023 (€50m) b   37  34 
Fixed/Floating Rate Subordinated Callable Notes 2023  r , n   505  – 
5.75% Fixed Rate Subordinated Notes 2026  a   600  608 
5.4% Reverse Dual Currency Subordinated Loan 2027 (Yen 15,000m) m   71  66 
6.33% Subordinated Notes 2032  a   49  50 
Subordinated Floating Rate Notes 2040 (€100m) b   73  67 
Barclays Bank SA, Spain (Barclays Spain)
Subordinated Floating Rate Capital Notes 2011 (€30m) b   10  22 
Absa 
14.25% Subordinated Callable Notes 2014 (ZAR 3,100m) f , n   253  269 
10.75% Subordinated Callable Notes 2015 (ZAR 1,100m) g , n   87  89 
Subordinated Callable Notes 2015 (ZAR 400m) h , n   29  29 
8.75% Subordinated Callable Notes 2017 (ZAR 1,500m) i , n   111  113 
8.8% Subordinated Fixed Rate Callable Notes 2019 (ZAR 1,725m) s , n   123  – 
8.1% Subordinated Callable Notes 2020 (ZAR 2,000m) j , n   138  143 
Barclays Bank of Ghana Ltd (BBG)
14% Fixed Rate BBG Subordinated Callable Notes 2016 (GHC 100,000m) a , n   5  6 
Barclays Bank of Kenya (Barclays Kenya)
Floating Rate Subordinated Notes 2014 (KES 1,000m) t   8  – 
Dated loan capital – non-convertible  11,494  8,339 

27 Subordinated liabilities (continued)

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2007  2006 
Notes  £m  £m 
Convertible 
Barclays Bank of Botswana (BBB)
Subordinated Unsecured Floating Rate Capital Notes 2014 (BWP 100m) n , o   8  9 
Barclays Bank Zambia PLC (Barclays Zambia)
Subordinated Unsecured Floating Rate Capital Notes 2015 (ZMK 40,000m) n , p   6  5 
Absa 
Redeemable cumulative option-holding preference shares (ZAR 147m) q   11  11 
Total convertible  25  25 

None of the Group’s dated loan capital is secured. The debt obligations of the Bank, Barclays Spain, BBG, BBB, Barclays Zambia, Barclays Kenya and Absa rank ahead of the interests of holders of their equity. Dated loan capital of the Bank, Barclays Spain, BBG, BBB, Barclays Zambia, Barclays Kenya and Absa has been issued on the basis that the claims there under are subordinated to the respective claims of their depositors and other unsecured unsubordinated creditors.

Interest
Notes
a
The interest rates on these Notes are fixed for the life of those issues.
b
These Notes bear interest at rates fixed periodically in advance based on London or European interbank rates.
c
These Notes bear interest at rates fixed periodically in advance based on Sydney Bill of exchange rates.
d
These Notes bear a fixed rate of interest until 2008. After that date, in the event that the Notes are not redeemed, the Notes will bear interest at rates fixed periodically in advance based on London interbank rates.
e
These Notes bear a fixed rate of interest until 2008. After that date, in the event that the Notes are not redeemed, the Notes will bear interest at rates fixed periodically in advance based on London interbank rates.
f
These Notes bear a fixed rate of interest until 2009. After that date, in the event that the Notes are not redeemed, the coupon will be reset to a fixed margin over a reference rate for a further period of five years.
g
These Notes bear a fixed rate of interest until 2010. After that date, in the event that the Notes are not redeemed, the Notes will bear interest at rates fixed periodically in advance based on Johannesburg interbank acceptance rates.
h
These Notes bear interest at rates fixed periodically in advance based on Johannesburg interbank acceptance rates.
i
These Notes bear a fixed rate of interest until 2012. After that date, in the event that the Notes are not redeemed, the Notes will bear interest at rates fixed periodically in advance based on Johannesburg interbank acceptance rates.
j
These Notes bear a fixed rate of interest until 2015. After that date, in the event that the Notes are not redeemed, the Notes will bear interest at rates fixed periodically in advance based on Johannesburg interbank acceptance rates.
k
These Notes bear a fixed rate of interest until 2012. After that date, in the event that the Notes are not redeemed, the coupon will be reset to a fixed margin over a reference gilt rate for a further period of five years.
l
These Notes bear a fixed rate of interest until 2014. After that date, in the event that the Notes are not redeemed, the Notes will bear interest at rates fixed periodically in advance based on European interbank rates.
m
This Loan bears a fixed rate of interest based on a US Dollar principal amount, but the interest payments have been swapped, resulting in a Yen interest rate payable which is fixed periodically in advance based on London interbank rates.
n
Repayable at the option of the issuer, prior to maturity, on conditions governing the respective debt obligations, some in whole or in part, and some only in whole.
o
These Notes bear interest at rates fixed periodically in advance based on the Bank of Botswana Certificate Rate. All of these Notes will be compulsorily converted to Preference Shares of BBB, having a total par value equal in sum to the principal amount of Notes outstanding at the time of conversion, should BBB experience pre-tax losses in excess of its retained earnings and other capital surplus accounts.
p
These Notes bear interest at rates fixed periodically in advance based on the Bank of Zambia Treasury Bill rate. All of these Notes will be compulsorily converted to Preference Shares of Barclays Zambia, having a total par value equal in sum to the principal amount of Notes outstanding at the time of conversion, should Barclays Zambia experience pre-tax losses in excess of its retained earnings and other capital surplus accounts.
q
The dividends are compounded and payable semi-annually in arrears on 30th September and 31st March of each year. The shares were issued by Absa Group Limited on 1st July 2004 and the redemption dates commence on the first business day after the third anniversary of the date of issue of the redeemable preference shares and ending on the fifth anniversary of the date of issue. Such exercise and notice will be deemed to be effective only on the option exercise dates, being 1st March, 1st June, 1st September or 1st December of each year. The shares are convertible into ordinary shares at the option of the preference shareholders on the redemption dates in lots of 100.
r
These Notes bear a fixed rate of interest until 2018. After that date in the event that the Notes are not redeemed, the Notes will bear interest at rates fixed periodically in advance based on London interbank rates.
s
These Notes bear a fixed rate of interest until 2014. After that date, in the event that the Notes are not redeemed, the Notes will bear interest at rates fixed periodically in advance based on Johannesburg interbank acceptance rates.
t
These Notes bear interest at rates fixed periodically in advance based on the Central Bank of Kenya Treasury Bill rates.

Notes to the accounts

For the year ended 31st December 2007


27 Subordinated liabilities (continued)

The 7.4% Subordinated Notes 2009 (the ‘7.4% Notes’) issued by the Bank have been registered under the US Securities Act of 1933. All other issues of dated loan capital by the Bank, Barclays Spain, BBG, BBB, Barclays Zambia, Barclays Kenya and Absa, which were made in non-US markets, have not been so registered. With respect to the 7.4% Notes, the Bank is not obliged to make (i) a payment of interest on any interest payment date unless a dividend is paid on any class of share capital and (ii) a payment of principal until six months after the respective maturity date with respect to such Notes.

Repayment terms

Unless otherwise indicated, the Group’s dated loan capital outstanding at 31st December 2007 is redeemable only on maturity, subject in particular cases, to provisions allowing an early redemption in the event of certain changes in tax law or, in the case of BBB and Barclays Zambia to certain changes in legislation or regulations.

Any repayments prior to maturity require in the case of the Bank, the prior notification to the FSA, in the case of BBB, the prior approval of the Bank of Botswana, in the case of Barclays Zambia, the prior approval of the Bank of Zambia, and in the case of Absa, the prior approval of the South African Registrar of Banks.

There are no committed facilities in existence at the balance sheet date which permit the refinancing of debt beyond the date of maturity.

28 Provisions

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Undrawn 
contractually 
committed 
facilities 
Redundancy  and 
Onerous  and re-  guarantees  Sundry 
contracts  structuring  provided  provisions  Total 
£m  £m  £m  £m  £m 
At 1st January 2007  71  102  46  243  462 
Acquisitions and disposals of subsidiaries  1  (2) –  74  73 
Exchange  –  –  8  5  13 
Additions  18  117  560  121  816 
Amounts used  (25) (117) (113) (60) (315)
Unused amounts reversed  (5) (18) (26) (174) (223)
Amortisation of discount  4  –  –  –  4 
At 31st December 2007  64  82  475  209  830 
At 1st January 2006  79