Lloyd's plans to raise approximately £500m of long-term subordinated debt to strengthen its central fund.
Lloyd's chief executive Nick Prettejohn said: "Lloyd's today is financially strong. We are now aiming to strengthen that position further by establishing a long-term, robust and flexible capital structure which is
economically efficient for those firms which choose to operate at Lloyd's.”
Prettejohn said Lloyd's had been working for a year to consolidate its aim to finance its central assets.
It had found a suitable strategy through a mix of traditional direct contributions by members, a new syndicate loan arrangement for 2005, and the prospective issue of subordinated debt.
Prettejohn said: “Our strategy has widespread support from the market, our membership and the rating agencies. We believe there is currently a good appetite for this type of issue in the capital markets.”
An application will be made to list the debt on the London Stock Exchange.
