13th May 2008 16:17
13 May 2008
Aviva issues hybrid lower tier 2 debt and repays senior debt
Aviva plc ("Aviva") announces that it will raise around £800million of lower tier 2 hybrid debt and will use the majority of the proceeds to repay existing short term senior debt as it matures.
The issue, which will be denominated in Sterling and Euros, was priced on 13th May and is due for settlement on 20th May.
The issue is in two tranches: A €500 million Euro 30 non-call 10 tranche, callable in 2018 at a fixed rate of 6.875% (with a re-offer yield of 6.883%, based on a spread of 235 basis points over the Euro ten-year mid-swap rate). In addition there is a £400 million Sterling 50 non-call 30 tranche, callable in 2038 priced at a fixed rate of 6.875% (with a re-offer yield of 6.952%, based on a spread of 245 basis points over the 4.75% Gilt due in 2038).
The transaction is expected to be rated A-/A3 by Standard and Poor's and Moody's respectively and will be listed on the London Stock Exchange.
Philip Scott, Aviva's group finance director, commented: "Very strong demand from investors in the UK and Continental Europe has enabled us to issue long-term debt to further enhance the Group's financial flexibility and strong regulatory capital position."
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Enquiries:
Media
Hayley Stimpson, director of group media relations +44 (0)20 7662 7544
Danielle Anthony, senior group media relations manager +44 (0)20 7662 9511
Matthew Newton, Finsbury +44 (0)20 7251 3801
Analysts
Charles Barrows, investor relations director +44 (0)20 7662 8115
Jessie Burrows, head of investor relations +44 (0)20 7662 2111
Susie Yeoh, investor relations manager +44 (0)20 7662 2117
Notes to editors:
Aviva is the leading provider of life and pension products in Europe (including the UK) with substantial positions in other markets around the world, making it the world's fifth largest insurance group based on gross worldwide premiums at 31 December 2006.
Aviva's principal business activities are long-term savings, fund management and general insurance, with worldwide total sales of £49.2 billion and funds under management of £364 billion at 31 December 2007.
The Aviva media centre at www.aviva.com/media includes images, company and product information and a news release archive.
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