Standard Life group benefits from a very strong capital position and our subordinated debt is an important component of this. Our capital management strategy is to maximise shareholder value through optimising the level and mix of capital resources.
Group Capital Management is responsible for the debt funding strategy and execution of the subordinated debt programme issuance & maintenance.
Debt issuance is a common capital raising practice. Standard Life has issued the following subordinated debt, in £Sterling and €Euro.
| Issued subordinated debt | Date Status |
Rating €/£ |
Nominal | Maturity date/ First call date |
Coupon % |
|---|---|---|---|---|---|
| Standard Life plc | Jul-02 LT2 |
A3 / A- € |
750m1 | Jul-12 Jul-12 |
6.375% |
| Standard Life plc | Jul-02 UT2 |
A3 / A- £ |
500m | Perpetual Jul-27 |
6.75% |
| Standard Life plc | Nov-04 T1 |
Baa1 \ A- € |
360m | Perpetual Jan-15 |
5.314% |
| Standard Life plc | Nov-04 T1 |
Baa1 \ A- £ |
300m | Perpetual Jan-20 |
6.546% |
1On 30 August 2011 Standard Life announced that it planned to tender for any and all of its outstanding €750,000,000 6.375% Fixed/Floating Rate Subordinated Guaranteed Bonds due 2022. On 12 September 2011 it announced that it had accepted for purchase €687,220,000 in aggregate principal amount, leaving €62,780,000 in aggregate principal amount of bonds outstanding.
As the debt is ‘subordinated', the rights and claims of our policyholders will come before those of the institutions investing in the bonds.
