Slaughter and May advised Prudential plc (Prudential) on its issuance of USD 1 billion 2.95 per cent. Subordinated Notes due 3 November 2033 under its USD 10 billion Medium Term Note Programme (the Programme).
The Notes were issued on 3 November 2021 and are intended to qualify as tier 2 capital under the Insurance (Group Capital) Rules of Hong Kong. The issuance is the first by Prudential of debt securities since the Insurance (Group Capital) Rules of Hong Kong became effective on 29 March 2021 and also the first by Prudential under the Programme since becoming subject to group-wide supervision by the Hong Kong Insurance Authority in October 2019. The Notes have been assigned a rating of A-/A3 (S&P/Moody’s) and will be listed on the Official List of the Financial Conduct Authority and admitted to trading on the regulated market of the London Stock Exchange.
Slaughter and May also advised Prudential in relation to the proposed redemption of several series of outstanding high coupon debt. Those redemptions are expected to be funded out of the net proceeds of the public offer and international placing completed by Prudential in October 2021, as well as from the net proceeds of the Notes.
BNP Paribas, HSBC, J.P. Morgan, SMBC Nikko and Standard Chartered Bank acted as joint lead managers in connection with the issuance.