Early redemption of subordinated debentures 2003-2005
Bure carried out an early redemption of the subordinated debentures on 31 March 2005. The debentures were redeemed at 80.7 per cent of the principal amount.
The debenture holder’s loan amount is shown in the yearly summary provided by the account operator. This percentage is pursuant to the terms and conditions of the debentures, based on discounting to present value from the date of the redemption to the original maturity date on 30 June 2007, by an interest rate of 10 per cent. This gave a value of approximately SEK 5.45 per debenture. The Swedish Tax Agency’s established historical cost for those who participated in the issue amounts to SEK 4.36 per debenture.
Calculation of historical cost for those who participated in the issue:
The amount that was received in the early redemption should be divided by 5.45 to obtain the number of debentures you have held. This number is then multiplied by 4.36 to determine the total historical cost. The difference between the proceeds received and the total historical cost is thus the capital gain.