Hybrid Capital Transaction

Prudential PLC
4 December 2001


For Immediate Release


4 December 2001


PRUDENTIAL PLC ANNOUNCES £750 MILLION STERLING AND EURO DENOMINATED HYBRID
CAPITAL TRANSACTION


On 19 November 2001 Prudential plc announced a planned Sterling and Euro
denominated offering of subordinated hybrid capital securities under a new
EMTN programme. Lead managers of the issue are Goldman Sachs International and
UBS Warburg, and Barclays Capital is a senior co-lead manager on the
transaction.


The £750 million issue was priced on 4 December 2001 and is due for settlement
on 19 December 2001. The 435 million Sterling tranche was priced at a fixed
rate of 6.125% p.a. (based on a spread of 175 bp over the 4.25% Gilt due
2032). The 500 million Euro tranche was priced at a fixed rate of 5.75% p.a.
(based on a spread of 105 bp over the mid Euro ten year swap rate).


Prudential will use the proceeds of the issue to refinance existing senior
debt and for other general corporate purposes.


The issue will be treated as capital for group solvency purposes and will
receive equity credit from Standard & Poor's.


Prudential Assurance Company is rated Aaa / AAA for financial strength. The
issue is rated A1 / A+ by Moody's and Standard & Poor's respectively and will
be listed on the London Stock Exchange.



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Enquiries to:


Media:

Geraldine Davies

020 7548 3911


Tracey Ivers

020 7548 3500


Analysts:

Rebecca Burrows

020 7548 3537


Issued by:

Prudential plc, Laurence Pountney Hill London EC4R 0HH Tel [phone], Fax
020 7548 3725

Incorporated and registered in England and Wales.

Registered office as above. Registered number 1397169.

Prudential plc is a holding company, subsidiaries of which are regulated by
the FSA