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| Note 39 - Subordinated liabilities |
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| Subordinated liabilities comprise limited recourse funding
from Kreditanstalt für Wiederaufbau (“KfW”), a German federal bank. This
funding, which individually finances investment assets, is at various fixed
rates of interest and maturity is dependent upon the disposal of the associated
assets. This funding is subordinated to other creditors of the individual
group undertakings to which these funds have been advanced and become non-repayable
as assets fail. The carrying values of the non-recourse funding are adjusted
to reflect the amounts expected to be payable when assets are failing. |
| As a method of settling this non-recourse funding, 3i Group
plc agreed to purchase from KfW €72 million (£50 million) owed by Technologieholding
Fonds VC GmbH and Technologieholding Fonds NBL GmbH for a consideration
of €9 million (£6 million). This resulted in a realised capital profit in
the year to 31 March 2003 of £39 million. |
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