26. PERPETUAL SUBORDINATED CONVERTIBLE SECURITIES
As at 31 December 2011
As at 31 December 2010
€’000
€’000
Convertible securities issued
99,750
99,750
Accrued interest
52,107
29,169
Capitalised issue costs
(1,200)
(1,200)
Convertible securities converted into ordinary shares
(5,835)
(1,500)
Total
144,822
126,219
On 25 June 2009, the Group issued €75 million of perpetual subordinated convertible securities (net of transaction costs of €1.2 million) on the following terms: The convertible securities were issued at par and will be entitled to a coupon of 20 per cent, payable annually in arrears. Interest may accrue and is capable of being paid in shares at the conversion price upon conversion. The Company does not currently expect to pay interest on its convertible securities. The convertible securities are perpetual but the Company may redeem the securities after 2 years at a premium of 20 per cent. The securities will be convertible into shares at the holder's option at a conversion price per Ordinary Share of €0.30. The securities have a minimum denomination of €50,000, are unlisted but can be transferred. The interest accrued for the relevant period does not vest until after 30 June of that 12 month period.
On 6 October 2009, the Group raised an additional €15 million of capital through the issuance of further convertible securities on terms that economically represented a premium to par. On 19 October 2009, the Group issued a further €9.75 million of convertible securities on the same terms as the prior issuance.
In February 2010, convertible security holders presented €1.5 million of convertible securities for conversion. Eurocastle duly converted these securities and issued 5,000,000 shares. No interest was payable on these converted securities.
In July 2011, convertible security holders presented €6.2 million of convertible securities for conversion. Eurocastle duly converted these securities and issued 20,613,818 shares (see Note 24).
In August 2011, convertible security holders presented €0.1 million of convertible securities for conversion. Eurocastle duly converted these securities and issued 219,725 shares (see Note 24)
Upon a full conversion of all convertible securities, the Group's number of shares outstanding would increase by 403,895,187, which includes 38,899,996 of shares related to deferred interest capitalised in June 2011.