What are they?
PIBS are Permanent Interest Bearing Shares. They are shares issued by building societies which pay a fixed rate of interest and provide membership. For the building societies concerned, they are a way of raising money without demutualising. The risk to the investor is different to that of a normal savings account. They are not suitable for all savers and should not be acquired without receiving financial advice.
What PIBS have Manchester Building Society issued?
In October 1999 the Society issued £5 million of PIBS. 5,000 individual shares were issued and each one had a nominal value of £1,000. In April 2005, a further £10 million of PIBS was issued. 10,000 individual shares were issued and each one had a nominal value of £1,000.
What rate of interest is paid on the PIBS?
The 1999 PIBS pays a coupon rate of 8% per annum.
The 2005 PIBS pays a coupon rate of 6.75% per annum.
When is interest paid?
Interest is paid half yearly, in arrears, on the following dates:
For the 1999 PIBS:
For the 2005 PIBS:
Specific terms and conditions relate to payments, which are not guaranteed. Please refer to the respective PIBS document.
Is interest paid net or gross?
Interest is currently paid without the deduction of basic rate tax, which aligns with the current rules and requirements of HM Revenue & Customs. Any interest earned on the PIBS should be declared to HM Revenue & Customs by the PIBS holders.
Are they redeemable at any time in the future?
Manchester Building Society PIBS are not redeemable at a specified date in the future and are perpetual.
What documentation is available?
At the time that each tranche of PIBS was issued, a document called an Offering Circular ("OC”) was produced; each OC contained all of the contractual terms of the PIBS along with certain financial and background information. Each OC contained information which was up to date at the time of its issue; financial data contained within the Annual Report and Accounts ("AR&A") and the Half Yearly Financial Information ("HYFI") provides more up to date financial information than that contained within the Offering Circular and accordingly the AR&A and HYFI should also be considered alongside the Offering Circular information in order to obtain the Society's most up to date financial position. Upon their issue, the Society was not directly involved in the marketing of the shares. Copies of the Offering Circulars are available by contacting the Society's Finance Director on 0161 923 8000; copies of the AR&A and HYFI may be downloaded from the Financial Information page.
Who do I contact with Registrar issues?
The Register of Shareholders is maintained by Equiniti Ltd on behalf of the Society. If you have any queries surrounding your certificate (for example, change of name or address), please contact:
Who do I contact if I have lost my interest cheque, or if it is out of date?
Please contact the Registrar:
Can you tell me their current market value?
The Society does not maintain a record of the market prices for its PIBS. If you would like to determine market prices for the Shares, you would need to contact an appropriately selected professional advisor.
Please note the value of PIBS can rise and fall.
How can I buy PIBS?
In order to buy PIBS, you would need to transact through an appropriate professional advisor, such as a stockbroker.
Will you buy them back from me?
No. The Society does not have such arrangements. To sell PIBS you need to talk to a professional advisor such as a stockbroker.
Can you advise me on whether I should buy or sell Manchester Building Society PIBS?
No. The Society is not allowed to provide investment advice. In order to obtain advice, you should contact a financial advisor or stockbroker.
Do you have any plans to issue more PIBS?
At present, the Society has no plans to issue more PIBS.
Who do I contact if I have a query?
If your query has not been answered by the points above, please contact your financial advisor or your stockbroker.
What are they?
PPDS are Profit Participating Deferred Shares. They are deferred shares for the purposes of Section 119 of the Building Societies Act 1986, as amended.
They are perpetual instruments with no maturity date or right to repayment other than on a winding-up; in the event of a winding-up, the PPDS would rank below claims in respect of the Society's PIBS.
The PPDS are not protected deposits for the purposes of the Financial Services Compensation Scheme.
What PPDS have Manchester Building Society issued?
In April 2013, the Society issued £18 million of PPDS.
Within the Society’s accounts, the aggregate amount of the PPDS is reported at a value of £17.567 million, as the accounting treatment for the PPDS is that they should be disclosed at their nominal value less directly attributable transaction costs net of tax, as relevant.
What remuneration is paid on the PPDS?
Save as described below, the holders of the PPDS are eligible to receive a dividend, at the discretion of the Board of the Society, of up to 30% (the "Participation Percentage") of the annual consolidated post-tax profits of the Society (calculated prior to payment of the PPDS dividend and subject to certain other adjustments).
The PPDS will also absorb the Participation Percentage of any consolidated post-tax losses recorded by the Society, any such amount being debited to a reserve account maintained by the Society for the purpose of the PPDS (the "PPDS Reserve Account"). Any net profits which are eligible to be paid to holders of PPDS as dividends but which are not so paid will be credited to the PPDS Reserve Account.
No dividends may be paid on the PPDS where the PPDS Reserve Account is in deficit as a result of previous year's losses.
The deficit on the PPDS Reserve Account is (£506k).
Dividends on the PPDS are non-cumulative.
What is the record date for the PPDS?
The record date for the PPDS currently is 30 January 2016. The next record date will be 30 January 2017.