PIBS (Permanent Interest Bearing Shares)

1. What are they?
2. What PIBS have Manchester Building Society issued?
3. What rate of interest is paid on the PIBS?
4. When is interest paid?
5. Is interest paid net or gross?
6. Are they redeemable at any time in the future?
7. What documentation is available?
8. Who do I contact with Registrar issues?
9. Can you tell me their current market value?
10. How can I buy PIBS?
11. Will you buy them back from me?
12. Can you advise me of whether I should buy or sell Manchester Building Society PIBS?
13. Do you have any plans to issue more PIBS?
14. Who do I contact if I have a query?

1. What are they?

PIBS are Permanent Interest Bearing Shares. They are shares issued by building societies which pay a fixed rate of interest rather than a dividend. For the building societies concerned, they are a way of raising money without demutualising.

2. What PIBS have Manchester Building Society issued?

In October 1999 the Society issued £5 million of PIBS. 5,000 individual shares were issued, each one had a face value of £1,000.
In April 2005, a further £10 million of PIBS was issued. 10,000 individual shares were issued, each one had a face value of £1,000.

3. What rate of interest is paid on the PIBS?

The 1999 PIBS pay 8% per annum.
The 2005 PIBS pay 6.75% per annum.

4. When is interest paid?

Interest is paid half yearly, in arrears, on the following dates:
For the 1999 PIBS:
29th April
29th October

For the 2005 PIBS:
13th April
13th October

Interest is paid to PIBS holders on the Register as at a given effective date. The effective date is 2 weeks in advance of the payment date.

5. Is interest paid net or gross?

Interest is paid without the deduction of basic rate tax. This is a requirement of H M Revenue & Customs. Any interest earned on the PIBS should be declared to H M Revenue & Customs by the PIBS holders.

6. Are they redeemable at any time in the future?

Certain PIBS that have been issued by other financial institutions display redemption dates, or dates on which the interest rate can rise. Unlike these institutions, Manchester Building Society PIBS are not redeemable at a specified date in the future and the interest rate that is quoted stays the same for the life of the share.

7. What documentation is available?

When the PIBS were first issued, an “Offering Circular” was produced and circulated by Barclays Capital to a number of their institutional clients. The Society was not directly involved in the marketing of the shares.
Electronic copies of the Offering Circulars are available by clicking on the links below:
Click here for the 1999 PIBS
Click here for the 2005 PIBS

8. 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:
Equiniti Ltd
Aspect House
Spencer Road  
Lancing
West Sussex
BN99 6DA

9. 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 adviser.

10. How can I buy PIBS?

In order to buy PIBS, you would need to transact with an appropriately selected professional adviser, who would then be able to source the shares for you.

11. Will you buy them back from me?

No. The Society does not buy back any shares.

12. 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 to you in relation to its shares. In order to obtain advice, you should contact an appropriately selected professional adviser.

13. Do you have any plans to issue more PIBS?

At present, the Society has no plans to issue more PIBS.

14. Who do I contact if I have a query?

If your query has not been answered by the points above, please contact the Society’s Finance Director, Chris Gee, on 0161 923 8000.