2018 Registration document and annual fi nancial report - BNP PARIBAS246
4 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018
4
Notes to the fi nancial statements
Undated Super Subordinated Notes issued by BNP Paribas SA BNP Paribas has issued Undated Super Subordinated Notes which pay a fi xed, fi xed adjustable or fl oating rate coupon and are redeemable at the end of a fi xed period and thereafter at each coupon date or every fi ve years. If the notes are not redeemed at the end of this period, some of these issues will pay a coupon indexed to Euribor, Libor or a swap rate.
On 13 April 2017, BNP Paribas SA redeemed the April 2007 issue for a total amount of EUR 638 million at the fi rst call date. These notes paid a 5.019% fi xed-rate coupon.
On 23 October 2017, BNP Paribas SA redeemed the October 2007 issue, for an amount of GBP 200 million, at the fi rst call date. These notes paid a 7.436% fi xed-rate coupon.
On 15 November 2017, BNP Paribas SA has issued Undated Super Subordinated Notes for an amount of USD 750 million which pay a 5.125% fi xed-rate coupon. These notes could be redeemed at the end of a period of 5 years. If the notes are not redeemed in 2022, a 5-year dollar swap
rate coupon will be paid half-yearly. This issue is eligible to Additional Tier 1 capital.
On 2 July 2018, BNP Paribas redeemed the June 2008 issue for a total amount of EUR 500 million, at the fi rst call date. These notes paid a 7.781% fi xed-rate coupon.
On 16 August 2018, BNP Paribas SA has issued Undated Super Subordinated Notes for an amount of USD 750 million which pay a 7% fi xed-rate coupon. These notes could be redeemed at the end of a period of 10 years. If the notes are not redeemed in 2028, a 5-year dollar swap rate coupon will be paid half-yearly. This issue is eligible to Additional Tier 1 capital.
On 18 September 2018, BNP Paribas SA redeemed the September 2008 issue for an amount of EUR 100 million, at the fi rst call date. These notes paid a 7.57% fi xed-rate coupon.
The following table summarises the characteristics of these various issues:
Date of issue Currency
Amount (in millions of
currency units)
Coupon payment
date Rate and term before 1st call date Rate after 1st call date
October 2005 EUR 1,000 annual 4.875% 6 years 4.875%
October 2005 USD 400 annual 6.250% 6 years 6.250%
July 2006 EUR 150 annual 5.450% 20 years 3-month Euribor +1.920%
June 2007 USD 600 quarterly 6.500% 5 years 6.500%
June 2007 USD 1,100 semi-annual 7.195% 30 years USD 3-month Libor +1.290%
December 2009 EUR 2 quarterly 3-month Euribor +3.750% 10 years 3-month Euribor +4.750%
December 2009 EUR 17 annual 7.028% 10 years 3-month Euribor +4.750%
December 2009 USD 70 quarterly USD 3-month Libor +3.750% 10 years USD 3-month Libor +4.750%
December 2009 USD 0.5 annual 7.384% 10 years USD 3-month Libor +4.750%
June 2015 EUR 750 semi-annual 6.125% 7 years EUR 5-year swap +5.230%
August 2015 USD 1,500 semi-annual 7.375% 10 years USD 5-year swap +5.150%
March 2016 USD 1,500 semi-annual 7.625% 5 years USD 5-year swap +6.314%
December 2016 USD 750 semi-annual 6.750% 5.25 years USD 5-year swap +4.916%
November 2017 USD 750 semi-annual 5.125% 5 years USD 5-year swap +2.838%
August 2018 USD 750 semi-annual 7.000% 10 years USD 5-year swap +3.980%
TOTAL EURO-EQUIVALENT HISTORICAL VALUE AT 31 DECEMBER 2018 8,230(1)
(1) Net of shares held in treasury by Group entities
BNP Paribas has the option of not paying interest due on these Undated Super Subordinated Notes. Unpaid interest is not carried forward.
For the notes issued before 2015, the absence of coupon payment is conditional on the absence of dividend payment on BNP Paribas SA ordinary shares or on Undated Super Subordinated Note equivalents during the previous year. Interest due is payable once dividend payment on BNP Paribas SA ordinary shares resumes.
The contracts relating to these Undated Super Subordinated Notes contain a loss absorption clause. Under the terms of this clause, in the event of insuffi cient regulatory capital, the nominal value of the notes may be reduced in order to serve as a new basis for the calculation of the related coupons until the capital defi ciency is made up and the nominal value of the notes is increased to its original amount.
