Completion of £250m Green Tier 2 Capital Issue

RNS Number : 2367C

Just Group PLC

15 October 2020

 

NEWS RELEASE	www.justgroupplc.co.uk

15 October 2020

JUST GROUP plc

SUCCESSFUL COMPLETION OF £250m GREEN TIER 2 CAPITAL ISSUE

Just Group plc ("Just", the "Group") announces that it has successfully completed its £250m Green Tier 2 capital raise via a 7% sterling denominated BBB rated 10.5 year, non-call 5.5 year issue ("Just Bonds").  The net proceeds of the Just Bonds will also be used in part to finance the concurrent tender offer targeting £75m of Just's £230m 3.5% Subordinated Tier 3 Notes due 2025 (the "T3 Notes"), which was announced on 6 October 2020 and expired on 13 October 2020.  Just has accepted for purchase £75m of the T3 Notes pursuant to the tender offer, in line with the targeted acceptance amount.

The Just Bonds are listed on the Euro MTF market of the Luxembourg Stock Exchange , are rated BBB by Fitch, and have the following key terms and conditions:

·	£250m 10.5 year non-call 5.5 year structure with a maturity date of 15 April 2031
·	A reset date of 15 April 2026 with optional redemption any time from 15 October 2025 up to the reset date
·	Tier 2 qualifying regulatory capital instrument under Solvency II
·	Bond issued by Just Group plc, Just's listed holding company
·	Annual interest rate of 7% up to the reset date, payable semi-annually in arrear

This is the first issue of a Green Bond by a UK insurer:  

·	An amount equal to the net proceeds of the Just Bonds will be allocated to eligible green assets, which include renewable energy, green buildings and clean transportation
·	The full eligibility criteria and Just's approach to sustainability investing and allocation of proceeds are set out in the Group's Sustainability Bond Framework, which has been published at https://www.justgroupplc.co.uk/investors/credit-investors

The combination of the issue of the Just Bonds and the purchase of £75m of T3 notes will improve the Group's Solvency II capital coverage ratio, that was reported at 30 June 2020, by 9 percentage points to a pro forma ratio of 154%¹. 

David Richardson, Group Chief Executive, said:

"Just has always been a market disruptor with a strong social purpose and so we are delighted to launch this Green Bond - the first of its kind in the UK insurance sector.  We were very pleased by the high level of investor interest which has allowed us to further strengthen our Solvency II capital coverage ratio whilst optimising Just's capital structure . " 

Note

1  The Group's capital coverage ratio as at 30 June 2020 was 145%, including a notional recalculation of transitional measure on technical provisions.

Enquiries Investors / Analysts Alistair Smith, Investor Relations Telephone: [phone] [e-mail] Paul Kelly, Investor Relations Telephone: [phone] [e-mail]

Media Stephen Lowe, Group Communications Director Telephone: [phone] [e-mail] Temple Bar Advisory Alex Child-Villiers William Barker Telephone: [phone]

A copy of this announcement will be available on the Group's website www.justgroupplc.co.uk

JUST GROUP PLC

GROUP COMMUNICATIONS

Enterprise House

Bancroft Road

Reigate

Surrey RH2 7RP

 

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