London Stock Exchange welcomes Nationwide Building Society

London Stock Exchange welcomes Nationwide Building Society

Tuesday 17th December 2013

London Stock Exchange today welcomed Nationwide Building Society to open its markets.

Nationwide – the UK’s largest building society and a top three provider of household savings and mortgages – recently issued £550 million of a new and innovative mutual-friendly capital instrument called Core Capital Deferred Shares (CCDS). To mark the inaugural launch of this new instrument, Nationwide Chief Executive, Graham Beale, opened trading at the London Stock Exchange in London this morning.

Traditionally building societies have accessed inorganic capital through Permanent Interest Bearing Shares (PIBS), but these no longer qualify as capital under new regulatory rules.   Nationwide developed CCDS as a replacement that meets future regulatory requirements, whilst also respecting mutual principals and hence contributing to the sustainability of the mutual business model.

Graham Beale said: “The successful inaugural issuance of CCDS confirms market confidence in Nationwide, this new mutual friendly capital instrument and the wider UK economy.  The establishment of CCDS is an important development for Nationwide, providing strategic capital flexibility without compromising our mutual status or business model.”

Barclays, J.P. Morgan, Bank of America Merrill Lynch and UBS were appointed Joint Bookrunners. Nationwide was advised by Rothschild.