On 2 August 2001 CGNU plc (CGNU) announced that it intended to raise £1 billion of subordinated debt to enhance the Group's capital position and support future growth opportunities.
On 2 August 2001 CGNU plc (CGNU) announced that it intended to raise Ł1 billion of subordinated debt to enhance the Group's capital position and support future growth opportunities. CGNU now confirms that the issue was nearly two times over-subscribed and, as a result, it will raise an increased amount of Ł1.2 billion of subordinated debt, reflecting this strong investor demand.
The issue, which will be denominated in Sterling and Euros, was priced on Friday 9 November and is due for settlement on Wednesday 14 November 2001.
A Ł700 million Sterling tranche was priced at a fixed rate of 6.125% (based on a spread of 185 bp over the 6% Gilt due December 2028). A €800 million Euro tranche was priced at a fixed rate of 5.75% (based on a spread of 112 bp over the mid Euro ten year swap rate).
The transaction is expected to be rated Aa3/A by Moody's and Standard and Poor's respectively and will be listed on the London Stock Exchange.
Enquiries:
Analysts
Steve Riley, Investor Relations Director
Tel: +44 (0)20 7662 8115
Media
Ian Frater, Head of Group Media Relations
Tel: +44 (0)20 7662 8221
Alex Child-Villiers, Financial Dynamics
Tel: +44 (0)20 7269 7107
Notes to editors:
* CGNU is the world's seventh-largest insurance group and the largest insurer in the UK. It has worldwide premium and investment sales from ongoing business of Ł27 billion, and more than Ł200 billion in assets under management at 30 June 2001.
* The most recent financial reports are available on this website.