The Great Eastern Life Assurance Company has priced US$500 million fixed rate perpetual capital securities, first callable in 2032, to be issued on or about Jan 22.
The Series 002 Securities will be under the S$2 billion Euro Medium Term Note Programme established by both Great Eastern Life and Great Eastern Holdings, announced Great Eastern Life on Tuesday (Jan 14).
At a fixed rate of 5.398 per cent per year, the security holders will receive distributions on each payment date from, and including, the issue date to, but excluding, the first reset date of Jan 22, 2032.
If the securities are not redeemed on the first reset date, the distribution rate will be reset on the day and every five years thereafter to a fixed rate per annum equal to the aggregate of the then prevailing five-year US Treasury rate and the initial spread of 0.696 per cent.
“This Series 002 Securities issuance is part of Great Eastern’s capital management programme, which involves raising alternative capital to optimise the capital mix, and provides Great Eastern with more flexibility in deploying its funds for general corporate and working capital purposes, including for growth and strategic investments,” said Great Eastern Life.
OCBC, Citigroup Global Markets Singapore, Singapore branch of the Hongkong and Shanghai Banking Corporation, Standard Chartered Bank of Singapore and UBS Singapore Branch are the joint lead managers for the hybrid securities.
The securities are expected to be rated “A” by Standard & Poor’s, noted Great Eastern Life.
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