Aviva subordinated debt

Aviva PLC
22 September 2003

22 September 2003

Aviva receives strong demand for subordinated debt transaction

On 10 September 2003 Aviva plc (Aviva) announced that it intended to raise
around £1.2 billion of subordinated debt to support future growth and enhance
further the group's capital position. Aviva now confirms that due to very strong
investor demand, after a European-wide roadshow, it will raise a total amount
equivalent to £1.6 billion.

The issue, which will be denominated in Sterling and Euros, was priced on Friday
19 September and is due for settlement on 29 September 2003.

The issue included a €650 million Euro 20-year dated tranche callable in 2013
priced at a fixed rate of 5.25% (based on a spread of 108 basis points over the
Euro ten-year mid-swap rate); a €500 million Euro perpetual tranche callable in
2015 priced at a fixed rate of 5.70% (based on a spread of 135 basis points over
the Euro twelve-year mid-swap rate); and a £800m Sterling perpetual tranche
callable in 2022 priced at a fixed rate of 6.125% (based on a spread of 140
basis points over the 8% Gilt due 2021).

The transaction is expected to be rated A-/A2 by Standard and Poor's and Moody's
respectively and will be listed on the London Stock Exchange.


Mike Biggs, Aviva's Group Finance Director, commented:

'We have seen very strong demand for our subordinated debt issue from investors
in the UK and Continental Europe. The issue was three times oversubscribed
enabling us to achieve very attractive pricing. This is cost effective long-term
core capital for the group.'

Enquiries:

Analysts

Steve Riley, Investor Relations Director            [phone]

Media

Sue Winston, Head of Group Media Relations          [phone]

Alex Child-Villiers, Financial Dynamics             [phone]


Notes to editors:


  • Aviva is the UK's largest insurance group and the world's seventh-largest
    insurer based on worldwide gross written premiums.

  • The joint bookrunners for the subordinated debt issue were Barclays
    Capital, Goldman Sachs, Lehman Brothers and SG Corporate & Investment
    Banking.

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