The following table sets out the terms of the outstanding Subordinated Debt


Principal Amount - Issued GBP 500m GBP 500m  GBP 300m 
Principal Amount -Outstanding as at 31/01/2017 GBP 392m GBP 500m  GBP 300m 
Interest Rate 7.421% per annum 4.75% per annum  4.875% per annum 
Term Perpetual October 2024  February 2047 
Redeemable 2017 n/a  February 2027 
Rank Tier one Lower tier two  Solvency II tier two 
Interest Deferral Regulatory Intervention / Solvency Condition* / Deferral on lower tier 2 Subordinated Debt Breach of regulatory capital / Regulatory intervention  Breach of regulatory capital / Regulatory intervention 
Issue Price 100% 99.227%  99.944% 
Ratings: A.M. Best  bbb+ a- a- 
Ratings: Fitch A- A- A- 
Ratings: S&P A- A- A- 

* 'Solvency Condition' will be met if the ratio of Capital and Reserves to Net Premiums Written is equal to or exceeds 35%.

The 'Solvency Condition' for interest deferral on the Subordinated Debt was defined in the Prospectus, Nov 2004 and Jun 2007, as the ratio of "Capital and Reserves" to "Net Premiums Written"