Business
Redemption of certain high coupon debt
Redemption of certain high coupon debt.
About this update from Prudential Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 9531P\n Prudential PLC\n 22 October 2021\n \n \n \n \n \n This announcement is not for release, publication, distribution, directly or indirectly, in or into the United States or any other jurisdiction where such distribution is prohibited by law.\n \n \n \n \n \n \n \n \n 22 October 2021 \n \n \n \n \n \n Prudential plc \n \n \n Redemption of certain high coupon debt and monitoring of refinancing opportunities \n \n \n \n \n \n On 4 October 2021 Prudential plc (\"Prudential\") completed a Hong Kong public offer and international placing of its shares (the \"Offer Shares\") (together the \"Share Offer\"), raising approximately HK$18.5 billion or US$2.4 billion1. The equity issuance will serve to maintain and enhance Prudential's financial flexibility in light of the breadth of opportunities to invest for growth in Asia and Africa. \n \n \n \n \n \n Specifically, and as previously announced on 19 September 2021, US$2.25 billion of the net proceeds of the Share Offer are expected to be used by Prudential to redeem existing high coupon debt. In this regard, Prudential has selected the following bonds for redemption and intends to exercise its option to redeem each such series of bond on the optional redemption dates identified below:\n \n \n \n \n \n · \n US$250 million 6.75% Capital Securities (G7293H114; GB00B02FFZ25) (optional redemption date falling on 23 December 2021)\n \n \n · \n US$300 million 6.5% Capital Securities (G7293H189; GB00B0G40271) (optional redemption date falling on 23 December 2021) \n \n \n · \n US$700 million 5.25% Notes (XS0873630742) (optional redemption date falling on 23 December 2021)\n \n \n · \n US$1,000 million 5.25% Notes (XS1426796477) (optional redemption date falling on 20 January 2022)\n \n \n \n \n \n The redemption of these bonds would reduce interest costs by approximately US$125 million per annum. \n \n \n \n \n \n Prudential intends to give formal notice of redemption to the holders of the foregoing bonds in accordance with the terms of the relevant bond documentation in due course, in order to redeem each of these bonds at the optional redemption dates identified above. For the avoidance of doubt, this announcement is for information purposes only and does not constitute a notice to holders for the purposes of a...