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Lloyd’s £300m debt issuance significantly oversubscribed

2nd February 2017 - Author: Luke Gallin

The specialist Lloyd’s of London insurance and reinsurance marketplace recently announced a £300 million capital raise, a 30-year Non-Call 10 subordinated bond that attracted more than £2 billion of orders.

The bond was announced on 24th January 2017 with final pricing at UK Government 10-year Gilts plus 330 basis points, and attracted a substantial amount interest from investors, so far oversubscribed with more than £2 billion of orders from just a £300 million issue.

“Interest from investors was outstanding – underlining the strength of Lloyd’s and its brand. This new £300m issue reinforces our efficient capital structure that offers excellent security to policyholders. This is reflected in Lloyd’s financial strength ratings of A+ with Standard & Poor’s, AA- with Fitch Ratings and A with A.M.Best,” said John Parry, Chief Financial Officer (CFO), Lloyd’s.

Lloyd’s states that the bond issue counts as Tier 2 capital and the re/insurance market intends to use the funds for general corporate purposes, which includes Lloyd’s retaining an efficient capital base.

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