TIDMPRU
RNS Number : 9531P
Prudential PLC
22 October 2021
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.
22 October 2021
Prudential plc
Redemption of certain high coupon debt and monitoring of
refinancing opportunities
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 billion(1) . 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.
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:
-- US$250 million 6.75% Capital Securities (G7293H114;
GB00B02FFZ25) (optional redemption date falling on 23 December
2021)
-- US$300 million 6.5% Capital Securities (G7293H189;
GB00B0G40271) (optional redemption date falling on 23 December
2021)
-- US$700 million 5.25% Notes (XS0873630742) (optional
redemption date falling on 23 December 2021)
-- US$1,000 million 5.25% Notes (XS1426796477) (optional
redemption date falling on 20 January 2022)
The redemption of these bonds would reduce interest costs by
approximately US$125 million per annum.
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 any of Prudential's securities.
Prudential also continues to monitor the market for other
opportunities to further reduce its interest costs by raising new
debt to refinance higher coupon existing debt (in addition to the
bonds identified above) on scheduled call dates and/or maturity
dates.
(1) After deduction of the underwriting fees and other estimated
expenses payable in connection with the Share Offer.
Notes to Editors
Enquiries:
Media Investors/Analysts
Addy Frederick +44 (0)20 3977 9399 Patrick Bowes +44 (0)20 3977
9702
Ping Ping Tan +65 9845 8904 William Elderkin +44 (0)20 3977
9215
About Prudential plc
Prudential plc provides life and health insurance and asset
management, with a focus on Asia and Africa. The business helps
people get the most out of life, by making healthcare affordable
and accessible and by promoting financial inclusion. Prudential
protects people's wealth, helps them grow their assets, and
empowers them to save for their goals. The business has more than
17 million life customers in Asia and Africa and is listed on stock
exchanges in London, Hong Kong, Singapore and New York. Prudential
is not affiliated in any manner with Prudential Financial, Inc. a
company whose principal place of business is in the United States
of America, nor with The Prudential Assurance Company Limited, a
subsidiary of M&G plc, a company incorporated in the United
Kingdom.
Disclaimers
This announcement does not purport to contain all of the
information that may be required by or may otherwise be important
to you and you should conduct your own due diligence and
independent analysis of Prudential and the information contained
herein. This announcement has been prepared solely for information
purposes and does not constitute any recommendation regarding the
securities of Prudential and does not and should not be considered
as any form of financial or investment option or recommendation by
Prudential or any of its directors, supervisors, management,
employees, agents, affiliates, advisers or representatives
("Representatives").
This announcement does not constitute or form part of any offer
or invitation to purchase, acquire, subscribe for, sell, dispose of
or issue, or any solicitation, commitment or advertisement of any
offer to purchase, acquire, subscribe for, sell or dispose of, any
securities of Prudential in any jurisdiction, nor shall it (or any
part of it) or the fact of its distribution form the basis of, or
be relied on in connection with, any contract or commitment
therefor.
The Offer Shares have not been and will not be registered under
the U.S. Securities Act of 1933, as amended (the "U.S. Securities
Act"), and may not be offered or sold in the United States or to,
or for the account or benefit of, U.S. persons (as such term is
defined in Regulation S under the U.S. Securities Act) absent
registration or an exemption from, or in a transaction not subject
to, the registration requirements of the U.S. Securities Act and in
accordance with applicable U.S. state securities laws. Prudential
does not intend to register the Offer Shares in the United States
or to conduct a public offering of securities in the United
States.
Forward-looking statements
This announcement may contain 'forward-looking statements' with
respect to certain of Prudential's plans and its goals and
expectations relating to the proposed redemption of certain debt
securities and its future financial condition, performance,
results, strategy and objectives. Statements that are not
historical facts, including statements about Prudential's beliefs
and expectations and including, without limitation, statements
containing the words 'may', 'will', 'should', 'continue', 'aims',
'estimates', 'projects', 'believes', 'intends', 'expects', 'plans',
'seeks' and 'anticipates', and words of similar meaning, are
forward-looking statements. These statements are based on plans,
estimates and projections as at the time they are made, and
therefore undue reliance should not be placed on them. By their
nature, all forward-looking statements involve risk and
uncertainty.
A number of important factors could cause Prudential's actual
future financial condition or performance or other indicated
results of the entity referred to in any forward-looking statement
to differ materially from those indicated in such forward-looking
statement. Such factors include, but are not limited to, the impact
of the current Covid-19 pandemic, including adverse financial
market and liquidity impacts, responses and actions taken by
governments, regulators and supervisors, the impact to sales,
claims and assumptions and increased product lapses, disruption to
Prudential's operations (and those of its suppliers and partners),
risks associated with new sales processes and information security
risks; future market conditions, including fluctuations in interest
rates and exchange rates, the potential for a sustained
low-interest rate environment, and the impact of economic
uncertainty, asset valuation impacts from the transition to a lower
carbon economy, derivative instruments not effectively hedging
exposures arising from product guarantees, inflation, including
interest rate rises as a response, and deflation and the
performance of financial markets generally; global political
uncertainties, including the potential for increased friction in
cross-border trade and the exercise of executive powers to restrict
trade, financial transactions, capital movements and/or investment;
the policies and actions of regulatory authorities, including, in
particular, the policies and actions of the Hong Kong Insurance
Authority, as Prudential's Group-wide supervisor, as well as new
government initiatives generally; given its designation as an
Internationally Active Insurance Group, the impact on Prudential of
systemic risk and other group supervision policy standards adopted
by the International Association of Insurance Supervisors; the
impact of competition and fast-paced technological change; the
effect on Prudential's business and results from, in particular,
mortality and morbidity trends, lapse rates and policy renewal
rates; the physical, social and financial impacts of climate change
and global health crises on Prudential's business and operations;
the timing, impact and other uncertainties of future acquisitions
or combinations within relevant industries; the impact of internal
transformation projects and other strategic actions failing to meet
their objectives; the effectiveness of reinsurance for Prudential's
businesses; the risk that Prudential's operational resilience (or
that of its suppliers and partners) may prove to be inadequate,
including in relation to operational disruption due to external
events; disruption to the availability, confidentiality or
integrity of Prudential's information technology, digital systems
and data (or those of its suppliers and partners); any ongoing
impact on Prudential of the demerger of M&G plc and the
demerger of Jackson Financial Inc.; the impact of changes in
capital, solvency standards, accounting standards or relevant
regulatory frameworks, and tax and other legislation and
regulations in the jurisdictions in which Prudential and its
affiliates operate; the impact of legal and regulatory actions,
investigations and disputes; and the impact of not adequately
responding to environmental, social and governance issues. These
and other important factors may, for example, result in changes to
assumptions used for determining results of operations or
re-estimations of reserves for future policy benefits. Further
discussion of these and other important factors that could cause
Prudential's actual future financial condition or performance or
other indicated results of the entity referred to in any
forward-looking statements to differ, possibly materially, from
those anticipated in Prudential's forward-looking statements can be
found under the 'Risk Factors' heading in Prudential's 2021 Half
Year Report and the 'Risk Factors' heading of Prudential's most
recent Half Year Report on Form 6-K filed with the U.S. Securities
and Exchange Commission ("SEC"). Prudential's most recent Half Year
Report and Form 6-K are available on its website at
www.prudentialplc.com .
Any forward-looking statements contained in this announcement
speak only as of the date on which they are made. Each of
Prudential and its Representatives expressly disclaims any
obligation to update any of the forward-looking statements
contained in this announcement or any other forward-looking
statements it may make, whether as a result of future events, new
information or otherwise except as required pursuant to the UK
Prospectus Rules, the UK Listing Rules, the UK Disclosure Guidance
and Transparency Rules, the Hong Kong Listing Rules, the SGX-ST
listing rules or other applicable laws and regulations.
Prudential may also make or disclose written and/or oral
forward-looking statements in reports filed with or furnished to
the FCA, the SEC or other regulatory authorities, as well as in its
annual report and accounts to shareholders, periodic financial
reports to shareholders, proxy statements, offering circulars,
registration statements, prospectuses and prospectus supplements,
press releases and other written materials and in oral statements
made by directors, officers or employees of Prudential to third
parties, including financial analysts. All such forward-looking
statements are qualified in their entirety by reference to the
factors discussed under the 'Risk Factors' heading in Prudential's
2021 Half Year Report and the 'Risk Factors' heading of
Prudential's most recent Half Year Report on Form 6-K filed with
the SEC. These factors are not exhaustive as Prudential operates in
a continually changing business environment with new risks emerging
from time to time that it may be unable to predict or that it
currently does not expect to have a material adverse effect on its
business.
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END
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