Direct Line blows out in sterling with rare tier two

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By Tyler Davies
29 May 2020

Direct Line was about 15 times subscribed for a new tier two on Friday, allowing it to tighten its pricing by 75bp. The deal from the UK company adds to a recent run of subordinated insurance supply in sterling.

Direct Line is a rare borrower in the capital markets. It only has a £500m April 2042 non-call 2022 tier two and a £350m perpetual non-call 10 year restricted tier one (RT1) outstanding.

The borrower also said on Friday that if were able to take £250m of tier ...

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