Phoenix Group has issued its first ever euro-denominated
bond, a €500 million ($587 million approximately) tier 2
capital bond in a rarely used bullet structure.
The deal is the latest in the
increasingly active insurance sector and part of an increasing
trend of companies refinancing ahead of Brexit. The bullet
structure, under which the entire principal value is repaid at
maturity, will help reduce uncertainty ahead of Brexit.
"As a tier 2 instrument, this issuance will provide the
group with solvency as opposed to a senior instrument," said
Alison Stevens, deputy group treasurer at Phoenix. "We chose
the maturity date for that time because it fitted in well with
the maturity profile of our existing debt, as we
don’t have any other debt instruments maturing in
The rationale behind issuing in euros is that it could
increase Phoenix’s investor base in Europe,
underlining the high level of activity in...