stateca limited - rns submit · the directors present the annual report and the audited financial...

StatECA Limited

I)irectors report and audited financial statements

For the financial year ended 30 September 2015

Registered number 48N375

StatECA Limited

ContentsPage (s)

Directors and other infoniiation

Directors report 2 - 5

Directors’ responsibilities statement 6

Independent auditors’ report 7 - 8

Statement of comprehensive income 9

Statement of financial position 10

Statement of changes in equity

Statement of cash flows 12

Notes to the financial statements 13 — 24

StatECA Limited

Page 1Directors and other information

Directors Sunil MassonNicholas Bland (appointed on 01 June 2015)Sally Gilding (resigned on 01 June 2015)

Registered Office Pinnacle 2Eastpoint Business ParkDublin 3Ireland

Administrator & Deutsche International Corporate Services (Ireland) LimitedCompany Secretary Pinnacle 2

Eastpoint Business ParkDublin 3Ireland

Trustee Deutsche Trustee Company LimitedWinchester HouseI Great Winchester StreetLondon EC2N 2DBUnited Kingdom

Principal Paying Agent, Custodian & Banker l)eutsche Bank AG. London BranchWinchester I-louseI Great Winchester StreetLondon EC2N 2DBUnited Kingdom

Arranger Barclays Bank PLCI Churchill PlaceLondon, El4 5HPUnited Kingdom

Independent Auditor PricesvaterhouseCoopers LLP7 More London RiversideLondon. SF1 2RTUnited Kingdom

Solicitors Arthur CoxEarlsfort CentreEarlsfort TerraceDublin 2Ireland

Banker Bank of Ireland Corporate BankingBlock A 2nd FloorOperations CentreCabinteelyDublin 18Ireland

StatECA Limited

Page 2Directors reportThe directors present the annual report and the audited financial statements of StatECA Limited (the “Company”) for the financial year ended 30September2015.

Principal activities and business reviewThe Company is a Special Purpose Vehicle established by Barclays Bank PLC (“BBPLC”) for the purpose of issuing limited recourse asset-backednotes (the “Notes’) and was incorporated in Ireland as a limited company on 31 August 2010, with registration number 488375. The Company hasestablished a secured notes programme (the “Programme”). The Company’s UK place of business is at do Deutsche Bank AG, London Branch,Winchester House. Mailstop 428, 1 Great Winchester Street. London EC2N 2DB. United Kingdom. Although the Company was incorporated inIreland, it is tax resident in the United Kingdom and its centre of main interest is in England and Wales.

The Company issued Notes under the l’rogramme in series (each a “Series”) which can either be tranched Series or untranched Series and either amanaged Series or static Series as defined in the transaction documents. Each Series of Notes is subject to the provisions of the transactionsdocuments as summarised in the base prospectus, the relevant Series prospectus and the issue terms for such Series. Under this Programme, theCompany may from time to time issue bonds, notes or other debt securities denominated in any specified currency as may be agreed by theCompany with any relevant manager(s) or placement agent(s). Notes will be issued in registered form, represented by one or more global Notes orby definitise Notes, in each case as specified in the applicable Series Prospectus and/or issue terms The Company’s transaction documents arekept by the Deutsche International Corporate Services (Ireland) Limited. (the “Administrator”) and are also available on the Irish Stock Exchangewebsite.

‘I’he Company has applied the proceeds of each Series of Notes to acquire underls np obligations (ihe”Charged Assets”) rum BBPLC fully hackedby guarantees granted by Guarantors that are the export credit agencies of sovereign states (each an “ECA”). As of3O September 2015. the ChargedAssets comprise of loans and receivables guaranteed by The Export Credit Guarantee Department of the United Kingdom (“ECGD”) and TheExport-Import Bank of the United States (“lEximbank”) origniated h BBPLC and subsequently sold to the Company.

Each Charged Asset must satistS pecilic eligibility criteria specified in the collateral acquisition agreement on the relesant date of acquisition. IfaCharged Asset does tint meet the eligibility criteria on the relesant trust date, the Seller must re-acquire the Charged Asset ‘rum the C’onipans for anamount equal to the outstanding balance of that Charged Asset, plus accrued interest, hedge break costs of the Issuer (if any) and oLit of pocketexpenses or will he required to indemnify the Company ‘or any losses incurred by it as a result of such breach of representation with respect to theeligibility of such Charged Asset and/or the related Guarantee in accordance with the terms of the relevant collateral acquisition agreement. As at 30September 2015, none of the triggers set out in the transaction documentation had been breached.

BBPLC failed the derecognition criteria under lAS 39 when it sold the legal ownership of the Charged Assets to the Company as the significantrisks and rewards were not transferred to the Company. Under the priorities of payment described in the secured Note Programme, the Noteholderswill bear the risk of loss in the event of del’ault or shortfall on proceeds on the Charged Assets. As a result, the loans remained on the Statement offinancial position of the Originator

The Company’s claim on the Charged Assets is shosvn as a deemed loan in the financial statements. They are initially recognised at fair value andsubsequently measured at amortised cost.

BBPLC was the initial purchaser of the Notes. and as at financial \ear end remained the sole Noteholder.

The Notes are listed on the Irish Stock Exchange.

Key performance indicatorsDuring the financial year:• the Company made a profit of GBP 994 (2014: GBP 975):• the structure performed in accordance with the parameters set out in the Programme and the performance is considered satisfactory: and• the Notes are rated Aal (2014: Aal) by Moody’s except for Series 2010-01 which is not rated.

As at 30 September 2015:• The Company’s total indebtedness was GBP 645,446,290(2014 GBP 857,l42,243)• the Company had the follosving Series of Notes in issue:

Series Description Maturity date CCI Nominal2010-01 Limited Recourse Secured Static Untranched Notes 0 1-Dec-22 USD 330.262,9712011-01 Limited Recourse Secured Static Untranched Notes 20-Oct-22 FUR 245,778,9212012-01 Limited Recourse Secured Static Untranched Notes 21-Oct-20 SEK 3.108.460,403

• Net equity amounted to GBP 4,126(2014: GRP 3.132)

StatECA Limited

Page 3Directors’ report (continued)Future developmentsThe directors expect that the present level of activity will he sustained for the foresecable future. The Board will continue to seek new opportunitiesfor the Company and will continoe to ensure proper management of the current portfolio of Series of the Company. It is anticipated that while someSeries svill redeem or mature, it is also expected that new issuances will he made.

Results and dividends for the financial yearThe results for the financial year are act out on page 9 The directors do not recommend the payment of a dividend for the financial year (2014 nill.

Changes in directors, secretary and registered officeOn 01 June 2015. Sally Gilding resigncd as dircctor of the Company and on the same date, Nicholas Bland was appointcd as director of theCompany.

There were no other changes in directors, secretary and rcgistered office during the financial year or since the financial year end.

Directors, secrelary and their interestsThe directors and secretary who held office on 30 September 2015 did not hold any shares in the Company at that date, or during the financial year.There were no contracts of any significance in relation to the husiness of the Company in which the directors had any interest, as defined in Section309 of the Companies Act 2fi14. at any time during the financial year. All related part> transactions involving directors have been outlined m noteIS.

The directors bencflied l’roiti qual il’ving third part> indemnity pros isiuns in place during the l’inancial year

Accounting recordsThe directors hcl eve that they have complied with the requirements of Sections 281 to 285 of the Companies Act 2014 with regard to theaccounting records by emplovi ng accooittmg personnel with the appropriatc e\perti sc aitd by proc iding adequate resources to the Ii sane al functionfhe accounting records of the Compans are maintained at Pinnacle 2. izasipoini Busniess Park. Dabi in 3. lreland

Principal risks and uncertaintiesThe principal risks and uncertainties facing the Company relate to its financial instrninents. The disclosures in relation to the Company’s policiesfor financial risk management, including market risk, credit risk, interest rate risk and liquidity risk, and tlse nature of financial instransents usedduring the financial year to mitigate exposure to these risks is shown in note 16 to the financial statements.

Operational risk exposureOperational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the Company’s processes. personnel andinfraatrueture. and from external factors other titan credit. niarket and liquidity risks such as those arising from legal and regulatory requirementsand generally accepted standards of corporate behaviour. Operational risks arise from all of the Company’s operations.

The Company scan incorporated svith the purpose ,of engaging in those activities outlined in the preceding paragraphs. All management andadministration functions are outsoureed to Deutsche International Corporate Servieca (Ireland) Lunited.

Going concernThe Company’s financial statements for tile financial year ended 30 September 2015 have been prepared on a going eoncem basis. Each ChargedAsset is referenced svith a specific Note, and any future loss derived from the asset svill be ultimately borne by the Noteholdhrs due to the Innitedrecourse nature of the Notes. As a result, the financial statements are prepared on a going concern basis.

Suhsequent eventsThere has been no significant event since the financial lear end up to the date of signing this report that requires disclosure in the financialstatements.

Transactions involving directorsDeutsche International Corporate Services (Ireland) Limited provides corporate services to the Company at arm’s length commercial rates.

Political donationsfhe Electoral Act. 1997 (as amended by the Electoral Amendment Political Funding Act. 2012) requires companies to disclose all politicaldonations over FUR 200 in aggregate made during a flutanelal year. The directors, on enquiry. have satisfied theinselses ihat no such donatiotiu inexcess of this amount base been made by tIme Company during time hinaneial year to 30 Septeniber 2015.

StatECA Limited

Page 4Directors’ report (continued)

Corporate Governance StatementIntroductionThe Company is subject to and complies with Irish Statute comprising the Companies Act 2014 and the Listing Rules of the Irish Stock Exchange.The Company does not apply additional requirements in addition to those required by the above Each of the service providers engaged by theCompany is subject to their own corporate governance requirements.

Financial Reporting ProcessThe Board of Directors (the “Board”) is responsible for establishing and maintaining adequate internal control and risk management systems of theCompany in relation to the financial reporting process. Such systems are designed to manage rather titan eliminate the risk of failure to achieve theCompany’s fitiancial reporting objectives and can only provide reasonable and not absolute assurance against material misstatement or loss.

The Board has established processes regarding intemal control and risk management systems to ensure its effective oversight of the Financialreporting process. These include appointing Deutsche international Corporate Services (Ireland) Limited (the “Administrator”), to maintain theaccounting records of the Company independently of Barclays Bank PLC (the “Arranger). Deutsche Bank AG. London Branch (the “Custodian)and Deutsche Trustee Company Limited (the “Trustee”). The Administrator is contractually obliged to maintain proper books and records asrequired by the Corporate Administration agreemeiit. To that end the Administrator performs reconciliations of its records to those of the Arrangerand the Custodian, The Administrator is also contractually obliged to prepare for review and approval by the Board the annual report includingfinancial statements intended to give a true and fair view.

‘[he Board evaluates and discusses significant accounting and reporting issues as the need arises. From time to tiilie. the Board also examines andevaluates the Administrators financial accounting and reporting rosilines and monitors and es ‘abates the external auditors performance.qualitcumns and independence. The ..\dniinistraior has operating responsibilit for internal control :n relation in the financial reporting processand the Administrators report to the Board

Risk .1sses’anicniThe Board is responsible for assessing the risk of irregularities svllether caused by fraud or error in financial reporting and ensuring the processesare in place for the timely identification of internal and external matters with a potential effect on financial reporting. The Board has also put inplace processes to identify changes in accounting rules and recommendations and to ensure that these changes are accurately reflected in theCompany’s financial statements More specifically;

- The Administrator has a reviesv procedure in place to ensure errors and omissions in the financial statements are identified and corrected.- Regular training on accounting rules and recommendations is provided to tIle accountants employed by tile Administrator.- Accounting bulletins, issued b’ Deutsche Bank AG. London Branch, an entity related to the Administrator, are distributed monthly to allaccountants employed by the Administrator.

Control .4 ct’ities

The Administrator is contractually obliged to design and maintain control structures to manage the risks svhich the Board judges to be significantfor intemal control over financial reporting. These control structures inciside appropriate division of responsibilities and specific control activitiesaimed at detecting or preventing the risk of significant deficiencies in financial reporting for every significant account in the financial statementsand tile related notes in the Company’s financial statements.

.tlonitoi’ing

The Board has an annual process to enstire that appropriate i’neasures are taken to consider and address the shortcomings identified and measuresrecommended by the independent auditors;

Given the contractual obligations on the Administrator, the Board has concluded that there is currently no need for the Company to have a separateinternal audit function in order for the Board to perform effective monitoring and oversight of the internal control and risk management systems ofthe Company in relation to tile financial reporting process.

Capitol Sti’uctu,’eNo person has a significant direct or indirect holding of securities in the Compaiiy No person has any special rights of control over the Company’ssllare capital.

Tile directors coilfirni that the sllare trustees hase entered into a share trust agreement whereby the\ have agreed not to exercise their voting rights.

With regard to the appointmeilt and replacement of directors. the Compan is governed by its Articles of Association. Irish Statute comprising theCompanies Act 2014, The Articles 01 Association themselves mas’ he amended by special resolution of tile sllareholders

StatECA Limited

Page 5Directors report (continued)

Corporate Governance Statement (continued)Powers ofdireetorsThe Board is responsible for managing the business affairs of the Company in accordance with the Articles of Association and the Company’stransaction docrirnents. The directors may delegate certain functions to the Administrator and other parties, subject to the supervision and directionby the directors. The directors have delegated the day to day administration of the Company to the Administrator. The directors cannot issue or buyback the shares of the Company

Audit committeeStatutory audits in Ireland are regulated by the European Communities Regulations, 2011 (S 1. 220 of 2010). According to the regulations, if thesole business of the Irish SPV relates to the issuing of asset backed securities, the SPV is exeiript from the requirement to establish an auditcommittee (under Regulation 9l(9)(d) of the Regulations). In this respect, the Company is not required to establish an atidit committee.

Independent auditorsIn accordance with Section 383(2) of the Companies Act 2014. PricewaterhouseCoopers LLP, have expressed their willingness to continue inolThe

On behalf of the hoard

Sunil 1asso n icholas Blandl)ireclor Director

Date: Q io/i

StatECA Limited

Page 6Directors responsibilities statement

The directors are responsible for preparing the directors’ report and the financial statements in accordance with Irish law.

Irish law requires the directors to prepare financial statements for each financial year Under that law the directors have prepared the financialstatements in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS)

Under Irish law the directors shall not approve the financial statements unless they are satisfied that they give a true and fair view of the companY’sassets, liabilities and financial position as at the end of the financial year and of the profit or loss of the company for the financial year.

In preparing these financial statements, the directors are required to:• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent:

• state whether the financial statements have been prepared in accordance with IFRS and ensure that they contain the additional informationrequired by the Companies Act 2014; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company svill continue in business.

The directors are responsible fir keeping adequate accounting records that are sufficient to:• correctl record and explain the transactions of the company.

• enable, at any time, the assets, liabilities, financial position and profit or loss of the companY to be determined with reasonable accuracy, and

• enable the directors to ensure that the financial siatenlents comply with the Companies Act 2014 and enable those financial statements to beaudited.

The directors are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detectionof fraud and other irregularities

On behalf of the board

iiSunil Masson i ‘icho a BlandDirector Director

Date:

Independent auditors’ report to the members ofStatECA Limited

Report on the financial statementsOur opinion

In our opinion, StatECA Limited’s financial statements (the “financial statements”):

• give a true and fair view of the company’s assets, liabilities and financial position as at 31December 2015 and of its profit and cash flows for the year then ended;

• have been properly prepared in accordance with International Financial Reporting Standards(“IFRSs”) as adopted by the European Union; and

• have been properly prepared in accordance with the requirements of the Companies Act 2014.

What we have audited

The financial statements comprise:

• the statement of financial position as at 31 December 2015;

• the statement of comprehensive income for the year then ended;

• the cash flow statement for the year then ended; and

• the notes to the financial statements, which include a summary of significant accounting policiesand other explanatory information.

The financial reporting framework that has been applied in the preparation of the financial statementsis Irish law and IFRSs as adopted by the European Union.

In applying the financial reporting framework, the directors have made a number of subjectivejudgements, for example in respect of significant accounting estimates. In making such estimates,they have made assumptions and considered future events.

Matters on which we are required to report by the CompaniesAct 2014

• We have obtained all the information and explanations which we consider necessary for thepurposes of our audit.

• In our opinion the accounting records of the company were sufficient to permit the financialstatements to be readily and properly audited.

• The financial statements are in agreement with the accounting records.

• In our opinion the information given in the Directors’ Report is consistent with the financialstatements.

• In our opinion, based on the work undertaken in the course of our audit of the financialstatements, the description of the main features of the internal control and risk managementsystems in relation to the financial reporting process included in the Corporate GovernanceStatement, is consistent with the financial statements and has been prepared in accordance withsection 1373(2)(c) of the Companies Act 2014.

• Based on our knowledge and understanding of the company and its environment, obtained in thecourse of our audit of the financial statements, we have not identified material misstatements inthe description of the main features of the internal control and risk management systems inrelation to the financial reporting process included in the Corporate Governance Statement.

Independent auditors’ report to the members ofStatECA Limited (continued)

Matter on which we are required to report by exceptionDirectors’ remuneration and transactions

Under the Companies Act 2014 we are required to report to you if, in our opinion, the disclosures ofdirectors’ remuneration and transactions specified by sections 305 to 312 of that Act have not beenmade. We have no exceptions to report arising from this responsibility.

Responsibilities for the financial statements and the auditOur responsibilities md those of the directors

As explained more fully in the Directors’ Responsibilities Statement set out on page 6, the directors areresponsible for the preparation of the financial statements and for being satisfied that they give a trueand fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance withIrish law and International Standards on Auditing (UK and Ireland). Those standards require us tocomply with the Auditing Practices Board’s Ethical Standards for Auditors.

This report, including the opinions, has been prepared for and only for the company’s members as abody in accordance with section 391 of the Companies Act 2014 and for no other purpose. We do not,in giving these opinions, accept or assume responsibility for any other purpose or to any other personto whom this report is shown or into whose hands it may come save where expressly agreed by our priorconsent in writing.

What an audit of financial statements involves

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland). Anaudit involves obtaining evidence about the amounts and disclosures in the financial statementssufficient to give reasonable assurance that the financial statements are free from materialmisstatement, whether caused by fraud or error. This includes an assessment of:

• whether the accounting policies are appropriate to the company’s circumstances and have beenconsistently applied and adequately disclosed;

• the reasonableness of significant accounting estimates made by the directors; and

• the overall presentation of the financial statements.

We primarily focus our work in these areas by assessing the directors’ judgements against availableevidence, forming our own judgements, and evaluating the disclosures in the financial statements.

We test and examine information, using sampling and other auditing techniques, to the extent weconsider necessary to provide a reasonable basis for us to draw conclusions. We obtain audit evidencethrough testing the effectiveness of controls, substantive procedures or a combination of both.

In addition, we read all the financial and non-financial information in the Directors’ Report and AuditedFinancial Statements to identify material inconsistencies with the audited financial statements and toidentify any information that is apparently materially incorrect based on, or materially inconsistentwith, the knowledge acquired by us in the course of performing the audit. If we become aware of anyapparent material misstatements or inconsistencies we consider the implications for our report.

Lawrence Wilkinsonfor and on behalf of PricewaterhouseCoopers LLPChartered Accountants and Statutory Audit FirmLondon

1 June 2016

All prolits shown are In respect ol continuing operationS There are no other comprehensive income for the year.

The Company made no recognised gains and losses other than the abo e results for the dnarc:iil vear

FinancialYear ended

30-Sep-15GBP

4.384.982(4.3 82,464)

2.5 18

(1,268)

1.250

(256)

994

Page 9

FinancialYear ended

30-Sep-14GBP

8,567.346(8,564,836)

2.510

(1.260)

.250

(275)

975

StatECA Limited

Statement of comprehensive incomeFor the financial year ended 30 September 2015

Interest income

Interest expense

Operating profit

Other expenses

Profit before tax

Income tax expense

ProOt for the Onancial year

Total comprchensie income for the financial year

Note

6

7

994 975

The notes on pages 13 to 24 forn an integral part of the financial statements.

StatECA Limited

Statement of financial positionAs at 30 September 2015

ASSETSNon-current assetsDeemed loan to Originator

Current assetsTrade and other receivablesCash and cash equivalentsTotal current assets

Total assets

LIABILITIESNon-current liabilitiesDebt securities issued

(‘urrdnt liabilitiesTrade and other pavables

i’otal liabilities

ShAREhOLDERS FUND - EQI’I’IY(‘ailed up share capital presented as equityRetained earningsTotal equity

Total liabilities and equity

Date:

Page 10

30-Sep-IS 30-Sep-14Note GBP GBP

9

10

2

3

14

631,428.561 844,242.401

862.252 2,708.7284.065,195 13.061.6714,927.447 15.770.399

646.356.008 860.012.800

645.446.290 857.142.243

905,592 2.867.425

646.35)882 860.009,668

4,125 3.1314.126 3.132

646,356,008 860.012,800

The Financial statements on pages 9 to 24 were approved and authorised For issue h ti B ard of Directors on - and signed onits behalf by

NASunil ?,IassonDirector Director

The notes on pages 1310 24 form an integral part of the Financial statements

StatECA Limited

Statement of changes in equityFor the financial year ended 30 September 2015

Balance as at 1 October 2013

Total comprehensive incomefor the financial year

Profit for the financial year

Balance as at 30 September 2014

Total comprehensive income for the financial year

Profit for the financial year

Balance as at 30 September 2015

Share capitalGBP

Page 11

Total equityGBP

2,157

Retainedearnings

GBP2.156

- 975 975

1 3,131 3,132

- 994 994

I 4.125 4.126

the notes on pages 13 to 24 thriii an integral part (if the financial statements

Cash flows from operating activitiesProfit before taxationForeign exchange loss on deemed loanForeign exchange gain on debt securities issued

Adjustments for:Accrued interest incomeAccrued interest expenseInterest paidInterest receivedTax paidNet cash used in operating acti ities

Cash flos from investing activitiesReceipts against deemed loanNet cash generated from investing activities

Cash flows from financing activitiesReilemption of debt securiues

Net cash used in financing activities

Net iiicrease/(decrcase) in cash and cash equivalents

Cash and cash equivalents at beginning of the financial year

Cash and cash equivalents at end of the financial year

StatECA Limited

Statement of cash flowsFor the financial year ended 30 September 2015

Note

912

6

Page 12

FinancialYear ended

30-Sep-14Gill’1,250

64977,772(65.676.104)

(8565.033)8.564.836

(11,186,894)11.177,534

(915)(707,554)

FinancialYear ended

30-Sep-ISGBP1,250

5.732,169(17.460515)

(4.382.991)4.3 82.464

(6,344,553)6.229.467

(1,842.709)

9 197081671 205662.187I 97081 .67 I 205662. I 87

12 (194,235,438) 1205057.550)(194,235.438) (205.057.550)

003524 (102.917)

13,061,671 13,164,588

II 14,065195 13.061,671

l’he notes on pages 13 to 24 form an integral part of the financial statements.

StatECA LimitedPage 13

Notes to the financial statementsFor the financial year ended 30 September 2015

General informationThe Company is a special purpose vehicle established by Barclays Bank PLC (“BBPLC”) for the purpose of issuing limited recourse asset-backed notes (the “Notes”) and was incorporated in Ireland as a limited company on 31 August 2010, with registration number 488375. TheCompany has established a Secured Notes Programme (the “Programme”). The Company’s UK place of business is at do Deutsche BankAG, London Branch. Winchester House. Maiistop 428, 1 Great Winchester Street, London EC2N 2DB, United Kingdom. Although theCompany was incorporated in ireland, it is tax resident only in the United Kingdom and believes its centre of main interest is in England andWales.

The Company issued Notes under the Programme in series (each a “Series”) which can either be tranched Series or untranched Series andeither a managed Series or static Series as defined in the transaction documents. Each Series of Notes is subject to the provisions of thetransactions documents as summarised in the base prospectus, the relevant Series prospectus and the issue terms for such Series. Under thisProgramme, the Company may from time to time issue bonds, notes or other debt securities denominated in any specified currency as may beagreed by tile Company with any relevant manager(s) or placement agent(s). Notes will be issued in registered form, represented by one ormore global Notes or by definitive Notes, in each case as specified in tile applicable Series Prospectus and/or issue tenns. Tile Company’stransaction documents are kept h the Deutsche international Corporate Services (Ireland) Limited. (tile “Adniinistrator”) and are alsoavailable on the Irish Stock Exchange website.

The Compails has applied tile proceeds of eadil Series of Notes to acquire underlyiilg obligations (the “Charged Assets”) i’rom BBI’LC t’uii\backed by guarantees grunied by Guarailtors that arc the export credit agencies of sovereign states (each an “ECA”). As of 30 September2015, the Charged Assets comprise of loans and receivables guaranteed by the Export Credit Guarantee Departmeilt of tile United Kingdom(“ECGD”) and Tile Export-import Bank of the United States (“i/simbank”) originated by BBPLC and suhsequentN sold to the Company

Each Charged Asset must satisiv specific eligibilits criteria specified in iilC collateral acquisition aereemeni on th relevant date ofacquisition. if a C’harged Asset does not meet the eligibility criicria on tile relevant trust date, tile Seller must re—acqu!re the Charged AssetI roiri the Company or an amouilt equal to tile outstanding balance of tilat Charged Asset. p1 us accrued iilter,’st. hedge break costs of theissuer (if ass ) aild out ol’ pocket e,xpeilses or ss ill he required to indenlnifs thc Comparp tbr any losses incurred by it as a result 01’ suchbreacil of representation svith respect to the eligibility of such Charged Asset and/or the related Guarantee in accordance with the terms of therelevant collateral acquisition agreement. As at 30 Sefitember 2015, none of tile triggers set out in tile transaction documentation had beenbreached.

BBPLC was the initial purchaser of the Notes and as at financial year end remained tile Sole Noteholder.

The Notes are listed on tile Irish Stock Exchange.

2 Basis of preparation(a) Statement of compliance

The financial statements have been prepared in accordance with EU endorsed International Financial Reporting Standards (IFRS) asadopted by tile EU, IFRS Interpretations Committee (IFRS IC) and the Companies Act 2014 applied to companies reporting underIFRS

The accounting policies Set out below ilave been applied in preparing tile financial statements for tile financial year ended 30September 2015: tile comparative information presented in these financial statements are for the financial year ended 30 September2014

These financial statements have been prepared on a going concern basis as defined in tile Directors’ report.

The directors consider that, ilaving taken all available relevant information into account in their going concem assessment. tilere isno reasonable doubt over the performance of tile Charged Assets and that the substantial risks and rewards from the transaction svilibe ulttmateiv borne by tile Noteholders. As a consequence, tile directors have a reasonable expectation that the Company hassufficient viability to contintie in operational existence for tile foreseeable future Thus, they continue to adopt tile going concernbasis of accounting in preparing the financial statements.

(b) Basis of measurementThese financial statements have been prepared on a historical cost basis


Notes to the financial statements (continued)For the financial year ended 30 September 2015

2 Basis of preparation (continued)(c) Use of estimates and judgements

The preparation of the financial statements requires management to make judgments, estimates and assumptions that may affect theapplication of accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates and associatedassumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances,the results of which form the basis of making the judgernents about carrying values of assets and liabilities that are not readilyapparent from other sources. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in thefinancial year in which the estimate is revised if the revision affects only that period or in the period of the revision and futureperiods if the revision affects both current and future periods.

There were no significant estimates made during the financial year as the financial statements have been prepared on a historical costbasis.

(d) Functional and presentation currencyThe financial statements are presented in Pounds Sterling (“GBP”).

While the Companys operating and financing activities are denominated in US Dollar (USD). Swedish Krona (SEK) and Euro(EUR). its actis ties are primarily Lindertaken with its controlling party. BBPLC whose functional currency is GBP. On this basis.the Company s lunctional and presentation currency has been determined as GBP

(e) Changes in accounting policies and disclosures[he accounting policies adopted are consistent ss itO those of the previous financial year except as tel lows

The following new standards and amendments became effective during the financial year ended 31 December 2015:

Standards and interpretation Effective datelAS 19 (revised) lAS 19 Employee Benefits (amended 2011) outlines the Annual periods beginning on or after I

accounting requirements for employee benefits, including January 2013 but adopted by theshort-term benefits (e.g. wages and salaries, annual leave), Company as from I January 2014post-employment benefits such as retirement benefits, otherlong-term benefits (e.g. long service leave) and terminationbenefits

IFRS 13 Fair Value Measurement - Amended by Annual Annual periods beginning on or after IImprovements to IFRSs 2011—2013 Cycle. Clarifies that the July 2014scope of the portfolio exception defined in paragraph 52 oIFRS 13 includes all contracts accounted for within thescope of lAS 39 Financial Instruments: Recognition andMeasurement or IFRS 9 Financial Instruments, regardless owhether they meet the definition of financial assets orfinancial liabilities as defined in lAS 32 Financialnytnrn,niv Prcniiinn

lAS 24 Related Party Disclosures - Amended by Annual Annual periods beginning on or after IImprovements to IFRSs 2010—2012 Cycle. Clarifies that an July 2014entity providing key management personnel services to thereporting entity or to the parent of the reporting entity is a

• related party of the reporting entity.

None these standards and amendments impacted the Company’s financial statements.



2 Basis of preparation (continued)(e) Changes in accounting policies and disclosures (continued)

New .c/unc/arc0 not vet adopted

A number of new standards and amendments to standards and interpretations became effective after 1 January 2016 and have notbeen applied in preparing the financial statements. None of these is expected to have a significant effect on the financial statementsof the Company, except those set out in the table below:

Standards and interpretation Effective datelAS I Presentation of financial The amendments were made to clarify guidance in lAS I Annual Periods beginning on or after Istatements on materiality and aggregation, the presentation o Jan 2016

subtotals, the structure of financial statements and thedisclosure of accounting policies. The amendments forma part of the IASB’s Disclosure Initiative, which exploreshow financial statement disclosures can be improved.

IFRS 9 This is a new accounting standard that introduces a new Annual periods beginning on or after I• classification approach for financial assets and liabilities. January 2018

The previous four categories for financial assets will bereduced to three, being fair value through profit and loss.fair value through other comprehensive income andamortised Cost, and financial liabilities will he measuredat amortised cost or fair value through profit and loss.‘Ibis may result in additional gains or losses beingrecognised in the Income Statement or OCI

The Company has not adopted any other new standards or interpretations that are not mandatory. The directors anticipate that theadoption of those standards or interpretations, other than IFRS 9, will have no material impact on the financial statements of theCompany in the period of initial adoption. The Company is still asssessing the impact of IFRS 9.

3 Accounting policies(a) Interest income

Interest income is primarily derived from the Company’s deemed loan and is recognised on an effective interest rate basis.

The effective interest rate is the rate that exactly discounts the estimated future cash payments and receipts through the expected lifeof the financial asset or liability or (where appropriate a shorter period) to the carrying amount of the financial asset or liability. Theeffective interest rate is established on initial recognition of the financial asset and liability and is not revised subsequently.

(b) Interest expenseInterest expense relates to interest on the debt securities issued and is recognised on an effective interest rate basis.

(c) Foreign currenciesAs stated in note 2(d), the results and financial position of the entity are expressed in GBP, the functional currency of the Company.Foreign currency transactions are translated into the functional currency at exchange rates prevailing at the reporting date for theStatement of financial position and daily exchange rates for the Statement of comprehensive income. All transactions entered into bythe Company are passed through, under the issue terms of each Series to the Noteholders.

(d) Other income and expensesAll other operating income and expense are accounted for on an accrual basis.

All fees and other expenses incurred by the Company are disclosed only for the purpose of the financial statements, as BBPLCundertakes to pay, inter alia, the fees and expense of the Trustee (Deutsche Trustee Company Limited) and the Principal PayingAgent, Custodian and Banker (Deutsche Bank AG, London Branch) which the Trustee and the Principal Paying Agent, Custodianand Banker are expected to incur in respect of the secured Notes Programme and each Series on behalf of the Company inaccordance with the terms of the fees and expenses agreement entered into between the Company. BBPLC, the Agents and theTrustee



3 Accounting policies (continued)(e) Taxation

Tax on profit on ordinaiy activities is recognised in the Statement of comprehensive income except to the extent that it relates toitems recognised directly in equity, in which case it is recognised in equity consistent with the accounting for the item to which it isrelated.

Current tax is the expected tax payable on the taxable income for the financial year, using tax rates applicable to the Company’sactivities enacted or substantively enacted at the statement of financial position date and adjust for tax payable in respect of previousfinancial years.

(1) Financial instrumentsThe financial instruments held h the Company include the following:• Deemed loan to Originator, and• Debt securities issued

RecognhlionThe Company initially recognises all financial assets and liabilities on the trade date at which the Company becomes a party to theconlraciual provisions of the insirumenis. Purchases and sales of financial assets and financial liabilities are recognised ai fair valueon the initial trade date.

De,’ecogni/ion

The Company derecognises a financial asset when the contractual rights to Ihc cash lows from thc asset expire, or it transfers therights to receive the contractual cash llosvs on the financial asset in a transaction in svliich suhstaniiallv all the risks and rcsvards ofosvncrship of die financial asset are iransfarred. Any interest in transtdrred fnancial assets that is created or retained by the Companyis recognised as a separate asset or liability

The Company derecognises a financial liability when its contractual obligations are discharged, cancelled or expired.

Qflse!!iog

Financial assets and liabilities are offset and the net amount presented in the Statement of financial position when, and only svhen,the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle theliability simultaneously, Income and expenses are presented on a net basis only svhien permitted by the accounting standards, or forgains and losses arising from a group of similar transactions.

Deemed loan to Origina/orBBPLC failed the derecognition criteria under lAS 39 when it sold the legal ownership of the Charged Assets to the Company as thesignificant risks and rewards were not transferred to the Company. Under the Priorities of Payment described in the Secured NoteProgramme, the Noteholders will bear the risk of loss in the event of default or shortfall on proceeds on the Charged Assets. As aresult, the loans remained on the Statement of financial position of the Originator.

The Company’s claim on the Charged Assets is shown as a deemed loan on the Statement of financial position. It is initiallyrecognised at fair value and subsequently measured at amortised cost

StatECA Limited

Page 17Notes to the financial statements (continued)For the financial year ended 30 September 2015

3 Accounting policies (continued)(f) Financial instruments (continued)

Impairment on deemed loonTire deemed loan to BBPLC is regularly assessed for impairment, based on the performance of the underlying receivables.

In determining whether an impairment loss should be recorded in the Statement of comprehensive income, the Company makesjudgements as to whether there is any observable data indicating that there is a measurable decrease in tire estimated future cashflows from the loan This evidence may include observable data tndicating that there has been an adverse change in the paymentstatus of borrowers

As at 30 September 2015, there was no indication that the deemed loan to the Originator was impaired.

Derivative Finoncial Assets and LiobilitiesThe interest rate swaps entered into between the CompanY and the Originator as part of the sale of the Charged Assets to theCompany are not recognised separately as a financial derivative instrument, as the amounts payable under the swaps reflect interestIlows from the Charged Assets which are not recognised by the Company for accounting purposes. Instead, the deemed loan toOriginator is recognised ssuh an interest rate ishrich reflects tire amount receisahle under the soap receiving leg.

Deli! securities a! imio,ii.ceil costAll debt securities arc initiall recognised at the fair value of the consideration received. These are subsequently measured atamortised cost using the efldctis e interest nretliod.

iris/c and oilier receivablesTrade and other rcceis ables ito not carry any interest and are short—term in nature and are accordingly stated at cost as reduced byappropriate allossairces for estimated irrecoserable atirounts. where applicable

T,’ade and othe,’ pavablesTrade and other payables are stated at cost,

(g) Cash and cash equivalentsCash and cash equivalents include cash in hand, deposits held with banks and other short term highly liquid investments withoriginal maturities of less than three months, which are subject to insignificant risk of changes in their fair value, and are used by theCompany in the management of its short term commitments. As the cash can only be used to meet certain specific liabilities and isnot available to be used with discretion, it is viewed as restricted cash

Statement ofcashJlosi’sInterest income arid interest expense are considered to come from tIre Company’s core operations, atid are therefore classified as cashllosvs generated from operating activities in tlte Statement of cash lows

(Ii) Segment reportingAn operating segment is a cotrrponent of an entity that engages in business activities from which it may earn revenues and incurexpenses (including revenues and expenses relating to transactions with other components of the same entity).

The Company is a special purpose s’ehicle whose principal activities are the issuance of limited recourse asset-hacked notes toacquire underlying obligations which are the revenue generating segment of the Company All administrating and operatingfunctions arc carried out and reviewed b) the Administrator and Corporate Secretary, Deutsche lntemational Corporate Services(Ireland) Limited The Chief operating decision maker (CODM) is the Board. The CODM is responsible for the Conipan ‘s entireportfolio and considers the business to have a single operating segment The Board’s asset allocation decisions are based on a single.integrated investment strategy, and the Compatry’s perforniance is evaluated on art overall basis Based on that fact, the directorsconfirm that there is only one operating segment.

4 Critical accounting estimates and judgementsEstintates and judgements are continually evaluated and are based on historical experience and other factors, including expectaliotis of futureevents that are believed to be reasonable under the circumstances

Fire estimates and assumptions titat have a significant risk of causing a material adiustmeitt to the carrying amounts of assets and liabilitiesrelate to the accounting of the deemed loan and considerations of impairment of the deemed loan

StatECA Limited

Notes to the financial statements (continued)For the financial year ended 30 September2015

FinancialYear ended

30-Sep-15GBP

43829911.250

7414,384,982

Page 18

FinancialYear ended

30-Sep-14GBP

8.565033

1.2501,063

8,567,346

Auditors remuneration olGBP 21750 (2014: GBI’ 2(1.600) excluding VAT, arose during the financial year and this relates to lees paid to thestatutory auditors PricewaterhouseCoopers LLP. As discussed in note 3(d), all expenses are paid directly by BBPLC and therefore they do notappear in the Statement of comprehensive income.

Other Operating ExpensesThe Company is administered by Deutsche International Corporate Services (Ireland) Limited. During the financial year, the Companyincurred a fee of GBP 10,000 (2014: GBP 10.000) relating to administration services. As discussed in note 3(d), all expenses are paiddirectly by BBPLC and therefore they do not appear on the (bee of the Statement of comprehensive income.

The Company has no employees. Although the directors received no remuneration from the Company in respect of qualifying servicesrendered during the financial year, their services were provided as part of administrator services provided by Deutsche InternationalCorporate Services (Ireland) Limited for which the above fee was payable.

8 Income tax expenseThe Company is taxable under The Taxation of Securitisation Companies Regulations 2006 (the “Regulations”). which is effective foraccountinu periods beginning on or after the I January 2007 Therefore the Company is not required to pay corporation tax on its accountingprofit or loss. Instead, the Company is required to pay tax on its retained profits as specified in the documentation governing the transaction.

The Company is entitled to retain GBP 125 of each interest payment date income collections as profit. This profit meets the definition ofRetained Profits tinder the Regulations and is taxable at the current taxation rate

The standard rate of Corporation Tax in the 11K changed from 21% to 20% with effect from I April 2015. Accordingly, the Company’sprofits for this accounting financial year are taxed at 20%.

[he corporation tax rate For the financial year is 20% (2014: 22%).

a) Analysis of tile Company tax charge in the financial year FinancialYear ended

30-Sep-ISGBP

UK corporation tax on the profit recognised as taxable under the permanent securitisation tax regime 256at 20% (2014: 22%)

256 275

5 Interest income

Interest income on deemed loanIssuer retained profitsInterest income on cash balance

6 Interest expense

Interest expense on debt securities isstied

7 Other expenses

Bank charges

Financial Financial\‘ear ended Year ended

30-Sep-IS 30-Sep-14GBP GBP

(4,382,464) (8,564,836)(4,382.464) (8,564,836)

Financial Financia I\ear ended Year ended

30-Sep-IS 30-Sep-I 4GBP GBP

(1.268) .261))(1.2681 (12601

FinancialYear ended

30-Sep-14GBP

275

StatECA Limited


Page 19

9 Deemed loan to OriginatorMovement in financial assetsBalance brought forwardReceipts during the financial year

Foreign exchange loss on translation at financial year end rate

At end o financial sear

1(1 Trade aiid other receivables

Interest receivable

II Cash and cash equivalents

Cash at bank

12 Debt securities issuedMoi’e,nc,,t infinancial liabilitiesBalance brought forwardRedemptions during the Financial year

Foreign exchange gain on translation at Financial year end rateAt end of financial year

30-Sep-20 15

Series Name Description

Limited Recourse Secured Static UntranchedNotes

Limited Recourse Secured Static UntranchedNotesLimited Recourse Sectired Static UntranchedNotes

30-Sep-20 14

Series Name Description

Limited Recourse Secured Static UntranchedNotesLimited Recourse Secured Static UntranchedNotes

Limited Recourse Secured Static UntranchedNotes

30-Sep-2015

Nominal GBP330,262.971 218,303,825

245.778.921 181,574,094

3.108,460,403 245,568,371645,446,290

8 Income tax expense (continued)b) The total charge for the financial year can be reconciled to the accounting profit as follows:

Profit bet’ore taxation

Current tax charge at 20% (2014: 22%)

Profit not taxable in accordance with Statutoiy Instrument No 3296. of the Taxation of SecuritisationCompanies Regulation 2006Total tax charge

FinancialYear ended

30-Sep-ISGBP1.250

FinancialYear ended

30-Sep-14GBP1,250

256 275

256 275


844,242,401 1,114.882,360

(197.081.671) (205.662.187)647.160.730 909.220.173(15.732.169) (64.977.772)631.428.561 844.242.401

30-Sep-IS 30-Sep-14GBP CBP

862,252 2.708,728

30-Sep-IS 30-Sep-14GBP GBI’

14,065,195 13,061,671


857,142,243 1,127,875,897(194,235,438) (205,057,550)

662,906.805 922,818,347(17,460,515) (65,676,104)645,446,290 857,142,243

2010-01

2011-01

201 2-01

Maturity date

01-Dec-22

20-Oct-22

21-Oct-20

Maturity date

01-Dec-22

20-Oct-22

21-Oct-20

2010-01

2011-01

2012-01

CCY

USD

EUR

SEK

CCY

USD

FUR

SEK

I . I30-Sep-20 14

Nominal458,313,716

320,328,040

3,799,999.209

GBP282,687,901

249,554,410

324,899.932

857,142,243


Notes to the financial statements (continued)

For the financial year ended 30 September 2015

12 Debt securities issued (continued)

Under all Series, interest is paid on a pass-through basis. Pursuant to the Interest priorit of payments, the sum of interest collections after the

payment of taxes owning by the Company and the retention of GBP 125 of retained profit by the Company in respect of each calculation

period shall he paid as interest on the Notes on the payment date in respect of the relevant calculation period.

The Company’s obligations under the debt securities issues are secured by a combination of deemed loans under note 9. The Noteholders’

recourse per Series is limited to the assets of that particular Series.

All payments to be made by the Company in respect of the Notes to the Noteholders will he made only from and to the extent of the sums

received or recovered from time to time in respect of the Charged Assets. To the extent that such sums are less than the amount due to the

Noteholders, the shortfall will be borne by the Noteholders.

13 Trade and other payables

Interest payable

Tax payable

14 (‘aIled up share capital presented as equitY

.1 nthor,sed:

IOU ordinary shares of FUR I each

ISSI?L’d (Old/il/li ,vnd

I ordinary shares oh’ El lIt I each

Presented asfolloirs:

Called up share capital presented as equity

15 Ownership of the Company

The sole shareholder of the Company is Deutsche International Finance (Ireland) Limited, holding I share.

BBP[.C. being the Originator and sole Noteholder. bears the Company’s substantial risks and rewards and has full control over the

Company’s operaiions On this basis, the Company is consolidated in BBPLC’s financial statements.

Barclay’s PLC is the ultimate parent of the Company.

BBPLC and Barclays PLC are incorporated in the United Kingdom and registered in England. BBPLC’s and Barclays PLC’s statutory

financial statements are available from the Barclays Corporate Secretariat. I Churchill Place. London E14 5HP.

16 Financial risk management

The Company has used the proceeds from the issuance of debt securities to acquire Charged Assets as described in the relevant issue deeds.

As at 30 September 2015. the Company had issued three Series of debt securities as stated in the Directors’ report.

The Company is not engaged in any other activities.

The risk profile of the Company’ is such that market, credit, liquidity and other risks of the investment securities and derivatives are borne

fully by the holders of debt securities issued.

Rick n,anagen,entJ’ranzework

[he Company has exposure to the following risks front its use of financial instruments:

(a) Credit risk.

(h) Market risk: and

(c) Liquidity risk.

30-Sep-ISGBP

905,061

531905,592

30-Sep-14

GBP

2.867,150

2752,867.425

30-Sep-IS 30-Sep-14

EL’R EUR

tOO 100

(;BP Gill’

GBP GBP

This note presents infdrmation about the Company’s exposure to each of the abes e risks. the Company’s objectives policies and processes

for measuring and managing risk and the Company’s management of capital.

StatECA Limited


16 Financial risk management (continued)(a) Credit risk

Credit risk is the risk of financial loss to the Company if a counterparry to a financial instrument fails to meet its contractual obligations. TheCornpanys principal financial assets are the deemed loan to the Originator, trade and other receivables and cash and cash equivalents, whichrepresents the Companys maximum exposure to credit risk.

The carr ing amount of deemed loan represents the maximum credit exposure. The maximum exposure to the credit risk at the reporting datewas.

Deemed loan to OriginatorTrade and other receivablesCash and cash equivalents

_____________ _____________

Fhe Notes issued in each Series arc- limited recourse to the assets in each particular Series and therelbre the Noteholdcrs are exposed io thedefaults arising in the portfolio of the charged assets for each Series

Deenic’d loan to OrigniuforI he decitied loan to the Originator, as described in note 9 is the class uI financial asset that the Compan) is exposed to rum a credit risk

perspective. As it 30 Sepicmher 201 S, there has been no impairmeni on the deemed loan. BI3PI.C. who is the Originator of the deemed loanis rated A-2 (2014 A) by Standard and Poor’s (S&P). As described in note I. the Charged Assets are fully hacked guarantees granted bs

ECUD and ximBank. hich are the expen credit agencies at’ the Untied kingdom and the t nited Siaies. respectivels

Trade and other ,‘ecen’ablesTrade and other receivables represents amount due from the Originator, BBPLC.

Cash and cash eqnitalen,sThe Company’s cash and cash equivalents are held mainly with Deutsche Bank AG London Branch and the Bank of Ireland Corporate

Banking which are rated as per below:

Bank of Ireland Corporate Banking

____________________________________________________________________

Standaid and Poor’sMoody’s

Deutsche Bank AG, London Branch

Standard and Poor’sMoody’s

Page 21

30-Sep-ISGBP

631428.561862.252

14.065,195646,356.008

30-Sep-14GBP

844,242.4012,708,728

13.061,671860.012.800

Filch

I 30-Scp-2015 I 30-Sep-2014Long term Short term Long term Short term

BBB- A-3 BB+ BBaa2 P-2 Ba2 N-P

BBB- F3 BBB F2

I 30-Sep-2015 I 30-Sep-2014Long term Short term Long term Short term

BBB+ A-2 A A-IA3 P-2 A3 P-2

Fitch A Ft A+ H-



16 Financial risk management (continued)(b) Market risk

Market risk is the risk that changes in market prices will affect the Company’s income or the value of its holdings of financial instruments.arising from movements in interest rates, foreign exchange rates and other market prices

ü) Interest late risk, cur,’encs’ risk and price riskThe Company issued limited recourse Notes to fund the acquisition of the Charged Assets.

The Company does not bear any interest, currency and price risk as these are borne by Noteholders of the existing debt issuances as a resultof the pass-through provision under the terms in the Programme.

Non interest Totalbearing

GBP GBP GBPDeemed loan to Originator 63 1.428.561 - 63 I .428.561Trade and oilier receivables 862.252 - 862.252Cash and cash equivalenis 14.065,195 - 14.065195Debt securitiCs issued (645446.290) - (645.446.290)trade and other pavables (905,061) (905.5’42)Net cspossrc 4,657 4.126

Interest rate risk30-Sep-14

Deemed loan to OriginatorTrade and other receivablesCash and cash equivalentsDebt securities issuedTrade and other pavables

_______________________________________________________

Currency risk30-Sep-15Deemed loan to OriginatorTrade and other receivablesCash and cash equivalentsDebt securities issuedTrade and other payahles

________________________________________________________________________

Net exposure

________________________________________________________________________

30-Sep-14Deemed loan to OriginatorTrade and other receivablesCash and cash equivalents

Debt securities issuedTrade and other payahles

______________________________________________________________________________

Net exposure

Sensilii’i!i a,malj’sis

The follosving tables set out the interest rate and currency exposure position of the Company:Interest rate risk Floating rate30-Sep-IS

Net exposure

(531(531)

Floating rate Non interest ‘I’otalhearing

GBP GBI’ GBI’844.242.401 - 844,242,401

2,708,728 - 2,708,72813.061.671 - 13.061.671

(857,142,243) - (857.142.243)(2.867,150) (275) (2.867.425)

3,407 (275) 3.132

SEK USD FUR TotalGBP GBP GBP GBP

245.568,372 211,091,682 74.768,507 631.428,561lll,l95 398,120 352,602 861,917

353 7.253,988 6,806,532 14,060,873(245,568,371) (218,303,825) (181,574,094) (645,446.290)

( I I 1,549) (439.965) (353.547) (905.061)

SEK USD EUR TotalGBP GBP GBP GBP

324.899.932 276.822.383 242.520.086 844.242,4011,535,652 513,645 659,1 12 2.708.409

537 5,912,393 7,145.653 13,058.583(324,899,932) (282,687,901) (249,554,410) (857.142,243)

(1.536,1 89) (560,520) (770,441) (2,867,150)

The impact of any changes in evchange rates and market prices on the financial instruments of the Company is borne by the Noteholders andtherefore has no net impact on the lrott or loss of the Company

StatECA Limited


16 Financial risk management (continued)(c) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its obligations as they fall due The Company limits its exposure toliquidity risk through the structure of priority of payments schedule. This means that the Company will only pay interest on debt securities tothe extent that funds are available.

The expected maturity profile of financial liabilities as at 30 September 2015 is as follosis.Carrying amount Gross estimated Less than I I to 2 financial 2 to 5 financial

cash flows financial year years years

The expected maturity profile ot’flnancial liabilities as at 30 September 2014 is as followsCarrying amount Cross estimated Less than I I to 2 financial

cash lions Iiiiancial year ears

trade and otherpayables

CBP GBP ClIP857.142243 857.142.243 201.131.050

2.867.425 2.867.425 2867.425

The Company measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making themeasurements:[.evel 1 Quoted market price (unadjusted) in an active market for an identical instrument

Level 2: Valuation techniques based on observable inputs, either directly (i.e. as prices) or indirectly (i.e. derived from prices). This categoryincludes instruments valued using: quoted market prices in active markets for similar instruments: quoted prices for identical or similarinstruments in markets that are considered less than active: or other valuation techniques where all significant inputs are directly or indirectlyobservable from market data

Level 3 Valuation techrtiques using significant unobservable inputs This category includes all instruments where the valuation techniqueincludes inputs not based on observable data and the unobservable inputs have a significant efléct mm the instrument’s valuation Thiscategory includes instruments that are valued based on quoted prices for ssnilar instruments where significant unobservable adjustments orassumptions are required to reflect diflérences between the instruments.

Page 23

Debt securitiesissuedTrade and otherpavables

GBP GBP GBP GBP645.446.290 645,446,290 89,545.245 152,557,305

905.592 905.592 905.502 -

More than 5financial years

GBP54,737.992

GBP248,605,748

646.351.882 646.351.882 190,450,837 152,557,305 248.605,748 54,737,992

Debt securitiesiss iied

2 to 5 financialyears

CIII’376.812.09))

C BPI 87638,4(2

Niore than Sfinancial years

C BP9 1.560.632

17 Accounting categorisation and fair values of financial assets and financial liabilities

At amortised

860.009,668 860,009.668 203,998,484 187.638,462 376,812,090 91.560.632

AssetsDeemed loan to OriginatorTrade and other receivablesCash and cash equivalents

LiabilitiesDebt securities issuedTrade and other pavables

Fair At amortised Faircost value cost value

GBP CBP GBP GBP30-Sep-IS 30-Sep-IS 30-Sep-14 30-Sep-14

631,428,561 631,428,561 844,242,401 844,242,401862,252 862,252 2,708,728 2,708,728

14,065,195 14.065,195 13,061.671 13.061,671646.356,008 646.356.008 860.012.800 860,012.800

(645,446.290) (645,446.290) (857.142,243) (857.142,243)(905,592) (905,592) (2,867,425) (2,867,425)

(646,351,882) (646,351,882) (860,009,668) (860,009,668)

StatECA Limited

Page 24Notes to the financial statements (continued)For the financial year ended 30 September 2015

17 Accounting categorisation and fair values of financial assets and financial liabilities (continued)Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’slength transaction on the measurement date.

Fair values of financial assets and financial liabilities that are traded in active markets, level I, are based on quoted market prices or dealerprice quotations. For all other financial instruments the Company determines fair values using valuation techniques.

Valuation techniques include net present salue and discounted cash flow models, comparison to similar instruments for which marketobservable prices exist. Black-Scholes and polynomial option pricing models and other valuation models. Assumptions and inputs used invaluation techniques include risk-free and benchmark interest rates, credit spreads and other parameters used in estimating discount rates,bond and equity prices, foreign currency exchange rates, equity and equity index prices and expected price volatilities and correlations, Theobjective of valuation techniques is to arrive at a fair value determination that reflects the price of the financial instrument at the reportingdate that would have been determined by market participants acting at arm’s length.

Level 2 prices uses widely recognised valuation models for determining the fair value ofconimon and more simple financial instruments suchas interest rate and currency swaps that use only observable market data and require little management judgemcnt and estimation. Observableprices and model inputs are usually available in the market for listed debt and equity securities, exchange traded derivatives and simple overthe counter derivatis es. e.g. nteresi rate swaps As ailahilitv of obsers able market prices and model inputs reduces the need for managemenijudgement and estimation and also reduces the uncertainiv associated with deicrinination of fur values Availuhiliiv of ohscrs able marketprices ad inputs varies depending on the products and markets and is prone to changes based on specific es ents and general conditions inthe financial markets

At 30 September 2015 and 31) September 2(114 none ot’the assets or liabilities of the Compan ssere sshied using Lesel I or Lesel 3 pricine.

All the assets and liabilities are carried it amortised cost The fur suulue of the usseis and liabilities are disclosed in noie 17.

18 Related party transactionsOther than disclosed elsewhere in the financial statements, the t’ollosving transactions took place between the Companvand the related partiesduring the financial financial year:


Interest income during ttse financial year 4,382.991 8.565.033Interest expense on the debt securities issued during the financial year (4.382.464) (8.564.836)Interest income on cash balance 741 1.063Issuer retained profits at the end of the financial year 1,250 1.250Interest receivable 862,252 2,708,728Interest payable (905.061) (2,867.150)

Cash held with Deutsche Bank AG, London Branch amounted to GBP 14.065.195 (2014: GBP 13,061,671).

Deutsche International Corporate Services (Ireland) Limited provides corporate services to the Company at arm’s length commercial rates.Nicholas Bland and Sunil Masson are not directors of Deutsche International Corporate Services (Ireland) Liniiied. As such, they have nointerest in transactions conducted with the Company.

19 ComparativesThe comparatives figures relates to the financial year ended 30 September 2014

20 Capital disclosure

The authoriscd share capital of the Company is EI.lR 100 out of which EUR I is issued and Fully paid. The Company is not subject to anycapital requirements, other than its share capital.

21 Events after the reporting dateThere were no significani events after the reporting date that would require adjustment to or disclosure in these financial statements

22 Commitment and contingenciesAs at 30 September 2015. the Company has no commitments or contingencies.

23 Approval of financial statements‘the Board of directors apprssved these financial statements on .1.

stateca limited - rns submit · the directors present the annual report and the audited financial...

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