Release details

2019-07-15 17:06 CEST
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OneSavings Bank plc : Interest Rate reset on the £15,000,000 Perpetual Subordinated Bonds

LEI: 213800WTQKOQI8ELD692

OneSavings Bank plc

(the "Company")

Interest Rate reset on the £15,000,000 Perpetual Subordinated Bonds (the "Bonds")

Key points:

  • In accordance with the terms of the Bonds, the interest rate payable on the Bonds is subject to a resetting process from time to time, with the next reset becoming effective from and including 27 August 2019.
  • Following the procedure set out in the terms of the Bonds, the interest rate has today been reset by the Company's appointed Agent Bank, Peel Hunt LLP ("Peel Hunt").
  • The revised rate of interest which shall be payable from and including 27 August 2019 is 4.6007%
  • This rate will remain the effective rate payable on the Bonds until the next reset of interest rate is due to take effect, which will be on the fifth anniversary of 27 August 2019.

Interest Rate Reset

The Company today announces the result of the interest resetting process applicable to its £15,000,000 Perpetual Subordinated Bonds.

Under the terms of the Bonds, the interest rate is due to be reset with effect from 27 August 2019 and thereafter on each fifth anniversary of that date.

The procedure for resetting the interest rates is set out in the terms and conditions of the Bonds and involves the Company's appointed Agent Bank fixing the rate by reference to the gross yield to redemption applicable on a Benchmark Gilt as chosen by the Agent Bank in accordance with the terms and conditions.  Peel Hunt has been appointed as the Agent Bank for these purposes and chose the 2.75% UK Treasury Gilt - 7 September 2024 as the Benchmark Gilt.

Following the methodology set out in the terms and conditions of the Bonds, the Agent Bank has determined the Gross Redemption Yield applicable on the Benchmark Gilt to be 0.6007%.  The terms and conditions of the Bonds require the interest rate on the Bonds to be set at the rate of 4% per annum plus the Gross Redemption Yield on the Benchmark Gilt.  Accordingly, it has determined the new rate of interest as being 4.6007% per annum. This rate will apply to the Bonds from and including 27 August 2019.

Enquiries:

OneSavings Bank plc

Alastair Pate                                                                 t: 01634 838 973
Group Head of Investor Relations

Nickesha Graham-Burrell 
Head of Company Secretariat                                        t:  01634 835 796

Brunswick                                                                   
Robin Wrench/Simone Selzer                                         t:  020 7404 5959

Notes to Editors

About OneSavings Bank plc

OneSavings Bank plc began trading as a bank on 1 February 2011 and was admitted to the main market of the London Stock Exchange in June 2014 (OSB.L). OSB joined the FTSE 250 index in June 2015. OSB is a specialist lending and retail savings group authorised by the Prudential Regulation Authority, part of the Bank of England, and regulated by the Financial Conduct Authority and Prudential Regulation Authority.

OSB primarily targets market sub-sectors that offer high growth potential and attractive risk-adjusted returns in which it can take a leading position and where it has established expertise, platforms and capabilities. These include private rented sector Buy-to-Let, commercial and semi-commercial mortgages, residential development finance, bespoke and specialist residential lending, secured funding lines and asset finance. OSB originates organically through specialist brokers and independent financial advisers. It is differentiated through its use of high skilled, bespoke underwriting and efficient operating model.

OSB is predominantly funded by retail savings originated through the long-established Kent Reliance name, which includes online and postal channels, as well as a network of branches in the South East of England. Diversification of funding is currently provided by access to a securitisation programme and the Term Funding Scheme.

HUG#2246978