Paragraph 5

The fourth transaction is the issue of debentures by the foreign subsidiary to the reporting body or to a group company.

The condition is that the circumstances specified in sub-paragraph (3) are not associated with or present in connection with the issue of the debentures.

The circumstances are that a loan, whether or not of the same amount as that secured by the debentures, is made by a company which is not resident in the United Kingdom to a company which is resident in the United Kingdom.