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OneSavings Bank resets interest rate on perpetual bonds to 4.6007%
By Sarah Lizee
Olympia, Wash., July 15 – OneSavings Bank plc announced that the interest rate on its £15 million perpetual subordinated bonds has been reset to 4.6007%, effective Aug. 27.
The procedure for resetting the interest rate involves the company's appointed agent bank, Peel Hunt, fixing the rate by reference to the gross yield to redemption applicable on a benchmark gilt. Peel Hunt chose the 2¾% U.K. treasury gilt due Sept. 7, 2024.
The gross redemption yield applicable on the benchmark gilt is 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. Therefore, the new rate is 4.6007% per annum.
The interest rate will be reset on each fifth anniversary from the last reset date.
OneSavings is a commercial bank based in Chatham, England.
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