Permanent interest bearing shares (PIBS)

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. For example, they are not covered by the Financial Services Compensation Scheme.

In March 1992 Skipton issued £25 million of PIBS, comprising 25,000 individual shares and each one had a nominal value of £1,000.

In April 2000, the Scarborough Building Society issued £15 million of PIBS, comprising 6,000 individual shares and each one had a nominal value of £2,500. These were assumed by Skipton in 2009 following the merger with Scarborough Building Society.

The 1992 PIBS pays a coupon rate of 12.875% per annum.

The 2000 PIBS pays a coupon rate of 8.50% per annum.

Interest is paid half yearly, in arrears, on the following dates:
For the 1992 PIBS:
31st July
31st January

For the 2000 PIBS:
26th October
26th April

Specific terms and conditions relate to payments, which are not guaranteed. Please refer to the respective PIBS document which can be found at the top of this page.

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.

Skipton’s PIBS are not redeemable at a specified date in the future and are perpetual.

At the time that each tranche of PIBS was issued, a document called an Offering Circular was produced. Each Offering Circular contained all of the contractual terms of the PIBS along with certain financial and background information. Each Offering Circular contained information which was up to date at the time of its issue.

Skipton publishes Annual Report & Accounts ("AR&A") and Half Year Results, which provide more up to date financial information than that contained within the Offering Circular. Therefore the Annual Report & Accounts and Half Year Results should also be considered alongside the Offering Circular information in order to obtain Skipton’s most up to date financial position.

Copies of the Offering Circulars are provided below:

• Offering Circular for 1992 PIBS
• Offering Circular for 2000 PIBS

Copies of the Annual Report & Accounts and Half Year Results may be downloaded here.

No amendments have been made to the Offering Circulars or terms of the PIBS.

The Register of Shareholders is maintained by Link Group on behalf of the Skipton. If you have any queries surrounding your certificate (for example, change of name or address), please contact: enquiries@linkgroup.co.uk.

Please contact the Registrar: Shareholder Helpline: 0371 664 0300

Skipton does not maintain a record of the market prices for its PIBS. If you would like to determine market prices, you would need to contact an appropriately selected professional adviser. Please note the value of PIBS can rise and fall.

In order to buy PIBS, you would need to transact through an appropriate professional adviser, such as a stockbroker.

To sell PIBS you need to talk to a professional adviser such as a stockbroker.

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

If your query has not been answered by the points above, please contact your financial adviser or your stockbroker.

If you would like to contact Skipton’s Treasury team by email please click here: investor.relations@skipton.co.uk. We aim to reply to all questions within 2 working days and would welcome contact from current investors.