Royal & SunAlliance (R&SA) has raised £450m of upper tier II subordinated debt, following a UK roadshow.
The group will use part of the proceeds to repay its yen-denominated subordinated loan with the balance supporting general business purposes.
The issue, which will be denominated in sterling, was priced on 16 July 2004 and is due for settlement on 23 July 2004.
The issue is callable on 8 December 2014, pays a coupon of 8.5% and has an issue price of £99.485, to give a spread of 337.5 basis points over the benchmark gilt.
The transaction is expected to be rated BBB by Standard and Poor's and Ba2 by Moody's and will be listed on the London Stock Exchange.
R&SA chief financial officer George Culmer, said: “We are very pleased with the positive response to the issue.
"The debt is eligible to qualify as regulatory capital under the forthcoming regulatory regime being introduced by the FSA and is another successful step in our programme to optimise our debt capital structure.”
