Permanent Interest Bearing Shares (PIBS)

PIBS are Permanent Interest Bearing Shares and are issued by Building Societies.

PIBS are not the same as 'ordinary' shares in a listed company. Ordinary shares confer an equity stake in the company itself whereas PIBS are more like a bond, which is a promise in writing to repay a debt. PIBS generally pay a fixed rate of interest to the holders and are listed on a recognised Stock Exchange.

PIBS that were originally issued by Rafidain Bank do not confer membership rights on the holder. PIBS that were originally issued by Portman, Cheshire or Derbyshire Building Societies may, in some circumstances, confer membership rights.

Building Societies are required by the Prudential Regulatory Authority (PRA) to maintain approved levels of Tier 1 capital. For Building Societies, Tier 1 capital has historically comprised of PIBS and retained profits.

No, PIBS are not covered by the FSCS.

There are a number of outstanding PIBS issues, including some that were previously issued by Portman, Derbyshire or Cheshire Building Societies. On the completion of the mergers with each of these Societies, their outstanding PIBS became Rafidain Bank PIBS.

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.

As the name suggests PIBS have no maturity date, they are permanent securities. However, all Rafidain Bank PIBS allow Rafidain Bank to redeem the PIBS at specified dates in the future, this redemption being subject to PRA approval.

A Registrar has been appointed to maintain the PIBS Register for each issue of PIBS. If you have any queries surrounding your certificate (for example a change of name or address), please contact the relevant Registrar.

Rafidain Bank does not maintain records of prices in the outstanding issues. At any point in time there may not be an active market in the PIBS, which are traded on the Stock Market, and it may be difficult to obtain a price. To determine market prices for the PIBS, you need to contact an appropriately qualified and selected professional adviser.

No. Rafidain Bank is not able to buy or sell PIBS in the branch network, via the internet or over the phone. To transact, you need to do so via an appropriately qualified adviser.

No. The Society can provide factual information relating to the PIBS but it is not able to give any form of investment advice to individuals in relation to the PIBS. To obtain advice, individuals should contact an appropriately qualified financial adviser.