MBSR Newcastle8%pibs

TIDMMBSR TIDMMBSP

RNS Number : 6593A

Manchester Building Society

30 September 2020

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 5 August 2020, the Society will not be paying the October 2020 coupon on the two tranches of PIBS in issue.

As set out in the half year results, as at 30 June 2020, the Society met its Total Capital Requirement ("TCR") in total capital terms, 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 2020. 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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

MSCWPUWGBUPUGAU

(END) Dow Jones Newswires

September 30, 2020 11:18 ET (15:18 GMT)

Newcastle8%pibs (LSE:MBSR)
Historical Stock Chart
From Apr 2024 to May 2024

Newcastle8%pibs (LSE:MBSR)
Historical Stock Chart
From May 2023 to May 2024