A unique equity capital arrangement employed by 13 credit unions and mutual banks is reaching the end of its life, with A$100 million in capital likely to be bought back by the end of the year.The Australian Mutual Capital Funding Trust, established in 2006, provided $50 million in tier one preference shares and $50 million in tier two subordinated debt to a group of 21 credit unions, which at the time represented 15 per cent of sector assets. Mergers have since cut the number of ADIs involved in the trust to 13.The equity raised via this trust will cease to count as prudential capital from late June. At this point there will be a one percentage point increase in the interest payable on the capital, providing an incentive for issuers to repay it.Mark Genovese, chief executive of Maritime, Mining & Power Credit Union (and one of the co-ordinators of the funding a decade ago) said "the majority of the issuers intend to repay on the step up date, that being the 21st June."A few will wait to later in the year as they need to gain approval from their members and prefer not to hold a SGM given the small size of their holdings."Genovese added that "a number of the existing issuers and some new ones are in the throes of preparing to issue [new capital instruments] under the new [APRA] regime in coming months."We expect that the first issue will be in the last quarter of the year and I will keep in touch as we get closer to a launch date."He said that on this occasion credit unions and mutual banks "are only collaborating on the costs associated with the preparation of documents. Each of those issuing will do so in their own right."Others in the earlier group include ADIs now trading as mutual banks such as G&C Mutual Bank (formerly SGE Credit Union), Victoria Teachers and QBANK (which will soon adopt this trading name in place of Queensland Police Credit Union).Ford Co-operative Credit Society in Geelong is the first of the participants in the trust to call a special general meeting, in late May, to consider a buyback.Grant Devine, chief executive of QBANK, said his mutual would call a meeting to vote on the buyback of $3 million in shares soon.??Devine said the credit union was "writing the capital off anyway", with the credit union reporting a capital adequacy ratio of near 22 per cent last year.Kevin Dupe, chief executive at Community Mutual in Armidale said they were "intending to buy back our capital, subject to members consent at our upcoming special general meeting."In an email Dupe wrote: "It certainly reminds you how time flies as ten years ago, we issued that world first mutual capital at what became excellent terms. "It really helped CMG grow into the vibrant regional banking institution it is today."The 13 credit unions that remain within Australian Mutual Capital Funding have a combined $7.6 billion in assets.