Annual interest set at 6.5%
Mutual insurance group LV= has raised £350m of debt by issuing subordinated bonds to investors.
The bonds, the proceeds of which will count towards LV=’s Solvency I capital base, will be issued by parent company Liverpool Victoria Friendly Society.
LV= will use the income from the issuance for general corporate purposes.
The company will pay annual interest of 6.5% to the bond’s investors. The bonds have a first-call date of 22 May 2023, but will otherwise mature on 22 May 2043.
They are expected to be rated BBB- by rating agency Standard & Poor’s.
LV= group finance director Philip Moore said: “We are very pleased with the amount of capital raised. This will enable us to improve the capital efficiency of the group and support the growth of our core businesses in general insurance, life insurance and retirement solutions, in line with the strategy we have set out.
“The strong order book and successful placement is a powerful signal of investors’ confidence in LV=’s financial strength and strategic plans.”
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