| Subordinated debentures |
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Note 19 Subordinated debentures | The debentures are unsecured obligations and are subordinated in right of payment to the claims of depositors and certain other creditors. The amounts presented below are net of our own holdings in these debentures, and include the impact of fair value hedges used for managing interest rate risk.
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| (Millions of Canadian dollars, except percentage and foreign currency) |
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Interest
rate |
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foreign currency
(millions) |
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As at |
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Maturity |
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Earliest par value
redemption date |
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5.38% |
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US$150 |
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$ |
188 |
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9.30% |
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110 |
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4.65% |
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US$1,500 |
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1,916 |
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November 1, 2022 |
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4.75% |
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TT$300 |
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55 |
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July 25, 2024 |
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2.74% |
(4) |
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1,499 |
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December 23, 2024 |
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2.88% |
(5) |
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1,489 |
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June 30, 2025 |
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2.09% |
(6) |
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1,250 |
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November 3, 2026 |
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2.14% |
(7) |
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1,717 |
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May 3, 2027 |
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2.94% |
(8) |
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– |
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January 28, 2028 |
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1.67% |
(9) |
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943 |
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Any interest payment date |
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(10) |
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224 |
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Any interest payment date |
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(11) |
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US$174 |
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215 |
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$ |
9,606 |
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(13 |
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$ |
9,593 |
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| (1) |
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On July 15, 2022, all US$150 million of outstanding 5.38% su bordina ted debentures matured. |
| (2) |
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The notes include NVCC provisions, necessary for the notes to qualify as Tier 2 regulatory capital under Basel III. NVCC provisions require the conversion of the instrument into a variable number of common shares in the event that OSFI deems the Bank non-viable or a federal or provincial government in Canada publicly announces that the Bank has accepted or agreed to accept a capital injection. In such an event, each note is convertible into common shares pursuant to an automatic conversion formula with a multiplier of 1.5 and a conversion price based on the greater of: (i) a floor price of $5.00 and (ii) the current market price of our common shares based on the volume weighted average trading price of our common shares on the Toronto Stock Exchange. The number of shares issued is determined by dividing the par value of the note (including accrued and unpaid interest on such note) by the conversion price and then times the multiplier. |
| (3) |
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On November 1, 2022, we redeemed all TT$300 million of outstanding 4.75% subordinated debentures due on November 1, 2027 for 100% of their principal amount plus interest accrued to, but excluding, the redemption date. |
| (4) |
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Interest at stated interest rate until earliest par value redemption date, and thereafter at a rate of 0.98% above the 3-month CDOR . |
| (5) |
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Interest at stated interest rate until earliest par value redemption date, and thereafter at a rate of 0.89% above the 3-month CDOR. |
| (6) |
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Interest at stated interest rate until earliest par value redemption date, and thereafter at a rate of 1.31% above the 3-month CDOR. |
| (7) |
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Interest at stated interest rate until earliest par value redemption date, and thereafter at a rate of 0.61% above the 3-month CDOR. |
| (8) |
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Interest at stated interest rate until earliest par value redemption date, and thereafter at a rate of 0.76% above the 3-month CDOR. |
| (9) |
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Interest at stated interest rate until earliest par value redemption date, and thereafter at a rate of 0.55% above the 3-month CDOR. |
| (10) |
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Interest at a rate of 0.40% above the 30-day Bankers’ Acceptance rate. |
| (11) |
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Interest at a rate of 0.25% above the U.S. dollar 3-month London Interbank Mean Rate (LIMEAN). In the event of a reduction of the annual dividend we declare on our common shares, the interest payable on the debentures is reduced pro rata to the dividend reduction and the interest reduction is payable with the proceeds from the sale of newly issued common shares. | All redemptions, cancellations and exchanges of subordinated debentures are subject to the consent and approval of OSFI. The aggregate maturities of subordinated debentures, based on the maturity dates under the terms of issue, are as follows:
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As at |
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(Millions of Canadian dollars) |
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