Aviva plc ("Aviva") today announced its intention to issue Innovative Tier 1 hybrid debt of around £750 million which will be used to repay existing senior debt, leaving overall debt levels unchanged.
Aviva plc ("Aviva") today announced its intention to issue Innovative Tier 1 hybrid debt of around Ł750 million which will be used to repay existing senior debt, leaving overall debt levels unchanged.
The joint bookrunners are ABN AMRO, Barclays Capital, Goldman Sachs International and Lehman Brothers (structuring adviser).
Andrew Moss, Aviva’s group finance director, said: "Given current favourable market conditions we are taking the opportunity to replace senior debt with high quality, low cost long-term hybrid debt. In addition, this will further enhance the group’s strong regulatory capital position, whilst leaving the financial leverage of the group unchanged."
Aviva’s EU Insurance Groups Directive surplus was Ł2.2 billion at 30 June 2004.
There will be no effect on the group’s credit ratings.
The transaction will be targeted at investors in the Sterling and Euro markets and will be launched, subject to market conditions, following a roadshow in the UK and Continental Europe.
Enquiries:
Analysts/Investors:
James Matthews, Head of Investor Relations +44 (0)20 7662 2137
Media:
Hayley Stimpson, Director of External Affairs +44 (0)20 7662 7544
Robert Bailhache, Financial Dynamics +44 (0)20 7269 7200
Notes to editors:
- The recent introduction of PS04/16 and PS04/20 by the FSA has clarified the rules for the types of hybrid debt that can be issued by insurers. Innovative Tier 1 hybrid debt is a security that is treated as capital for regulatory purposes but can be structured in a tax deductible form.