Issue of Debt

RNS Number : 4795A

Aviva PLC

01 August 2008

1 August 2008

Aviva issues £200m hybrid lower tier 2 debt

Aviva plc has increased its outstanding £400 million 6.875% subordinated debt issue due 2058, originally issued on 13 May 2008, by an additional £200 million, taking the total amount to £600 million. The £200 million issue is to be consolidated and shall form a single series with the original £400 million issue.

The increase was priced on 1 August and is due for settlement on 8 August.

The increase, callable from 20 May 2038, priced at a fixed rate of 6.875% (with a re-offer yield of 6.892%, based on a spread of 235 basis points over the 4.75% Gilt due in 2038).

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

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Enquiries:

Media

Hayley Stimpson, director of group media relations +44 (0)20 7662 7544

Danielle Anthony, senior group media relations manager +44 (0)20 7662 9511

Matthew Newton, Finsbury +44 (0)20 7251 3801

Analysts

Charles Barrows, investor relations director +44 (0)20 7662 8115

Jessie Burrows, head of investor relations +44 (0)20 7662 2111

Susie Yeoh, investor relations manager +44 (0)20 7662 2117

Notes to editors:

Aviva is the leading provider of life and pension products in Europe (including the UK) with substantial positions in other markets around the world, making it the world's fifth largest insurance group based on gross worldwide premiums at 31 December 2007.

Aviva's principal business activities are long-term savings, fund management and general insurance, with worldwide total sales of £49.2 billion at 31 December 2007 and funds under management of £359 billion as at 30 June 2008.