25th Mar 2019 08:30
LONDON (Alliance News) - Just Group PLC said Monday it now has raised GBP375 million through an equity placing and bond issue.
Earlier in March, the retirement insurer said it had placed 94.0 million shares at a price of 80 pence each. Shares in Just Group were down 1.3% Monday morning at 69.90 pence each.
Meanwhile, a restricted tier 1 bond issue raised GBP300 million, from perpetual bonds with a first call date in April 2024.
The bonds - listed on the Euro MTF market in Luxembourg - have an annual interest rate of 9.4%, payable semi-annually. They have been given a BBB- rating by Fitch.
"The GBP300 million bond issue and GBP75 million equity placing together increase our pro forma solvency coverage ratio as at December 31 to 160%. This package of actions was selected after careful consideration to optimise the capital mix and level and it greatly strengthens our capital base," said Chief Executive Rodney Cook.
Just Group's previously reported solvency ratio at December 31 was 136%.
Cook added: "The new capital has come at a cost and we are acutely conscious of our duty to manage our capital position carefully. We have a plan in place to deliver capital self-sufficiency from 2022 which focuses on growing profits rather than sales through disciplined pricing. We have further capital flexibility, for example through our unutilised tier 2 capacity."
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Just Group