Aviva Tier1 debt issue

Aviva PLC
18 November 2004


News release


18 November 2004


AVIVA INCREASES INNOVATIVE TIER 1 DEBT ISSUE ON STRONG DEMAND

On 10 November 2004 Aviva plc (Aviva) announced that it intended to raise around
£750 million of Innovative Tier 1 hybrid debt.  Aviva now confirms that due to
very strong investor demand, following a roadshow in the UK and Continental
Europe, it will raise a total amount equivalent to £1.0 billion. This will be
used in full to repay existing senior debt, leaving overall debt levels
unchanged.

The issue, which will be denominated in Sterling and Euros, was priced on
Thursday 18 November and is due for settlement on 25 November 2004.

The issue is in two tranches: A €700 million Euro perpetual tranche, callable in
2014 priced at a fixed rate of 4.73% (based on a spread of 80 basis points over
the Euro ten-year mid-swap rate). In addition there is a £500 million Sterling
perpetual tranche, callable in 2020 priced at a fixed rate of 5.90% (based on a
spread of 117 basis points over the 8% Gilt due 2021).

The transaction is expected to be rated A-/A3 by Standard and Poor's and Moody's
respectively and will be listed on the Luxembourg Stock Exchange.

Andrew Moss, Aviva's group finance director, commented: 'Very strong demand from
investors in the UK and Continental Europe has enabled us to increase the issue
and complete the transaction quicker than expected. The issue was four times
over-subscribed enabling us to lock in long-term funding at attractive rates and
further enhance the Group's strong regulatory capital position.'

                                    - ends -

Enquiries:

Analysts
Steve Riley, investor relations director               [phone]

Media
Hayley Stimpson, director of external affairs          [phone]
Geoffrey Pelham-Lane, Financial Dynamics               [phone]

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


                      This information is provided by RNS
            The company news service from the London Stock Exchange