Sterling

Issuer takes big size ahead of blackout, offering ‘right’ products to investors

◆ Some question timing ◆ Source close to deal defends outcome ◆ Debate on how much inaugural issuers should pay up

Volume and demand rising as spread attractiveness to swaps increases

More strategic deals lower down in the capital stack may be delayed for a 'market that's not tasting blood'

The company announced his departure on Friday

Shift to shorter Gilts as UK gets ready to borrow £304bn in 2025-26

Company is refinancing to cut costs

Borrowing task is second largest ever after Covid response

◆ Sterling market embraces diverse set of insurance sector deals ◆ L&G underlines different current dynamics in tier two and RT1 asset classes ◆ Proceeds to go for buyback ahead of October call

◆ Rare deeply subordinated capital from an insurer in sterling very popular ◆ Potentially negative new issue premium ◆ First possible window taken

Founder Matthew Moulding injects £60m while extending a term loan and revolver

◆ Borrowers take £500m from undersupplied market ◆ Despite lower spread Northern Powergrid's longer maturity trade more popular ◆ Sterling volumes down around 10% from March 2024