Capital Funding Approach
Through a diverse mix of products, structures and currencies, Bank of Scotland Treasury ensures HBOS' funding needs are met and is continuously expanding its suite of funding products to support HBOS' momentum and expansion.
We have an ongoing strategy of diverse capital initiatives through a disciplined approach. Following the completion of the £4.0bn Rights Issue in late July 2008, the Group's capital ratios have been rebased to a higher level. At 30 June 2008, the pro forma capital ratios (calculated to include the £4.0bn of capital raised from the Rights Issue) were Tier 1 8.6%, Core Tier 1 6.5% and Total Capital 12.2%. These ratios are in the middle of our target ranges of 8%-9% for Tier 1 and 6%-7% for Core Tier 1. In addition to the Rights Issue we have issued £750m Tier 1 in March and US$2bn Lower Tier 2 in May. For further detailed information about our capital strategy, please click here. To find detailed information on our capital issuance including pricing supplements and offering circulars, please click here.
Through the Group's USD120bn Senior Unsecured Funding (MTN) programme we transact vanilla and extentible public issues - as well as vanilla and structured private placements - in a diverse range of markets and currencies. For further details including programme prospectus and pricing grids, please click here.
HBOS also use a number of securitisation and covered bond programmes as part of its funding and capital management activities. Covered bonds are continuing to grow in stature as a key element of our funding. In 2006 HBOS issued the inaugural residential mortgage covered bond in the US ($2bn 5yr fixed rate), followed in 2007 by a second very successful covered bond issue in the US ($3bn 10yr fixed rate). In H1 2008 HBOS' term capital markets issuance included £500m securitisation and £600m covered bonds.
For further details of all our programmes including offering circulars and monthly reports, please click here.
Please click on one of the following links for full details of our all our issues including investor reports:
