2020 Universal registration document and annual financial report - BNP PARIBAS 223
4Consolidated finanCial statements for the year ended 31 deCemBer 2020
4
Notes to the financial statements
4.h DEBT SECURITIES AND SUBORDINATED DEBT This note covers all issued debt securities and subordinated debt measured at amortised cost and designated as at fair value through profit or loss.
➤ DEBT SECURITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS (NOTE 4.A)
Issuer/Issue date In millions of euros Currency
Original amount in foreign currency (millions)
Date of call or interest
step-up Interest rate Interest step-up
Conditions precedent for coupon payment(1) 31 December 2020 31 December 2019
Debt securities 56,882 56,636
Subordinated debt 851 893
Redeemable subordinated debt (2) 53 120
Perpetual subordinated debt 798 773
BNP Paribas Fortis Dec. 2007(3) EUR 3,000 Dec.-14 3-month Euribor
+200 bp A 798 773
(1) Conditions precedent for coupon payment: A Coupon payments are halted should the issuer have insufficient capital or the underwriters become insolvent or when the dividend declared for
Ageas shares falls below a certain threshold. (2) After agreement from the banking supervisory authority and at the issuer s initiative, redeemable subordinated debt issues may contain a call
provision authorising the Group to redeem the securities prior to maturity by repurchasing them in the stock market, via public tender offers, or in the case of private placements over the counter. Debt issued by BNP Paribas SA or foreign subsidiaries of the Group via placements in the international markets may be subject to early redemption of the capital and early payment of interest due at maturity at the issuer s discretion on or after a date stipulated in the issue particulars (call option), or in the event that changes in the applicable tax rules oblige the BNP Paribas Group issuer to compensate debt-holders for the consequences of such changes. Redemption may be subject to a notice period of between 15 and 60 days, and is in all cases subject to approval by the banking supervisory authorities.
(3) Convertible And Subordinated Hybrid Equity-linked Securities (CASHES) issued by BNP Paribas Fortis (previously Fortis Banque) in December 2007. The CASHES are perpetual securities but may be exchanged for Ageas (previously Fortis SA/NV) shares at the holder s sole discretion at a price of
EUR 239.40. However, as of 19 December 2014, the CASHES will be automatically exchanged into Ageas shares if their price is equal to or higher than EUR 359.10 for twenty consecutive trading days. The principal amount will never be redeemed in cash. The rights of the CASHES holders are limited to the Ageas shares held by BNP Paribas Fortis and pledged to them.
Ageas and BNP Paribas Fortis have entered into a Relative Performance Note (RPN) contract, the value of which varies contractually so as to offset the impact on BNP Paribas Fortis of the relative difference between changes in the value of the CASHES and changes in the value of the Ageas shares.
As at 31 December 2020, the liability is eligible to prudential own funds for EUR 205 million.
