Sustainability RT1 Bond Completion

RNS Number : 0582M

Just Group PLC

16 September 2021

 

NEWS RELEASE	www.justgroupplc.co.uk

16 September 2021

JUST GROUP plc

SUCCESSFUL COMPLETION OF £325m SUSTAINABILITY RESTRICTED TIER 1 REFINANCING EXERCISE

Just Group plc ("Just") announces that it has successfully completed a refinancing exercise which will reduce the pre-tax interest costs of Just Group (the "Group") by £12m per annum and improve the Group's Solvency II post-tax organic capital generation by £10m per annum.

The refinancing exercise consists of the issuance of £325m of perpetual Sustainability Restricted Tier 1 bonds with a coupon of 5% ("JustBonds") and a concurrent tender offer (the "TenderOffer") targeting Just's £300m 9.375% restricted tier 1 bonds, issued in March 2019 (the "TargetBonds"). Just has accepted for purchase £295m of Target Bonds pursuant to the Tender Offer, and intends to exercise its rights under the terms and conditions of the Target Bonds to redeem the £5m of outstanding Target Bonds.

This is the first issue of a sustainability RT1 bond by a European insurer: 

·	An amount equal to the net proceeds of the Just Bonds will be allocated to eligible green and/or social asset categories. Eligible green assets include renewable energy, green buildings, clean transportation, and eligible social assets include affordable housing and access to essential services.
·	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 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:

·	£325m perpetual non-call 10 year structure
·	Annual fixed interest rate of 5% up to 30 September 2031 (the "ResetDate"), payable semi-annually in arrear
·	Optional redemption at any time from 30 March 2031 until the Reset Date
·	Restricted Tier 1 qualifying regulatory capital instrument under Solvency II
·	Issued by Just Group plc, the listed holding company of the Group

David Richardson, Group Chief Executive, said:

"Just continues to be a market innovator with a strong social purpose and so we are delighted to launch this Sustainability RT1 Bond - the first of its kind in the UK and European insurance sector. We were very pleased by the high level of investor interest, which has allowed us to further optimise Just's capital structure, whilst improving organic capital generation . This will help to support profitable and sustainable growth for many years to come. " 

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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