Aviva plan to repay senior debt

Aviva plc has announced its intention to issue Innovative Tier One hybrid debt of around £750m (€1.1m), which will be used to repay existing senior debt, leaving overall debt levels unchanged.

The joint bookrunners are ABN AMRO, Barclays Capital, Goldman Sachs International and Lehman Brothers (structuring adviser).

Aviva’s group finance director Andrew Moss said: "Given current favourable market conditions, we are taking the opportunity to replace senior debt with high-quality, low-cost, long-term hybrid debt.

“In addition, this will further enhance the group’s strong regulatory capital position, while leaving the financial leverage of the group unchanged."

Aviva’s EU Insurance Groups Directive surplus was £2.2bn (€3.2bn) at the end of June.

There will be no effect on the group’s credit ratings.

The transaction will be targeted at investors in the sterling and euro markets and will be launched, subject to market conditions, following a roadshow in the UK and continental Europe.

Aviva started today's trading on the ISEQ at €5.91.