a9531p
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of October, 2021
PRUDENTIAL PUBLIC LIMITED COMPANY
(Translation of registrant's name into English)
1 Angel Court, London,
England, EC2R 7AG
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports
under
cover Form 20-F or Form 40-F.
Form
20-F X
Form 40-F
Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes
No X
If
"Yes" is marked, indicate below the file number assigned to the
registrant
in connection with Rule 12g3-2(b): 82-
This announcement is not for release, publication, distribution,
directly or indirectly, in or into the United States or any other
jurisdiction where such distribution is prohibited by
law.
22
October 2021
Prudential plc
Redemption of certain high coupon debt and monitoring of
refinancing opportunities
On 4 October 2021 Prudential plc ("Prudential")
completed a Hong Kong public offer and international placing of its
shares (the "Offer Shares") (together the "Share Offer"), raising
approximately HK$18.5 billion or US$2.4 billion1.
The equity issuance will serve to maintain and enhance Prudential's
financial flexibility in light of the breadth of opportunities to
invest for growth in Asia and Africa.
Specifically,
and as previously announced on 19 September 2021, US$2.25 billion
of the net proceeds of the Share Offer are expected to be used by
Prudential to redeem existing high coupon debt. In this regard,
Prudential has selected the following bonds for redemption and
intends to exercise its option to redeem each such series of bond
on the optional redemption dates identified below:
●
US$250 million 6.75% Capital
Securities (G7293H114; GB00B02FFZ25) (optional redemption date
falling on 23 December 2021)
●
US$300 million 6.5% Capital Securities
(G7293H189; GB00B0G40271) (optional redemption date falling on 23
December 2021)
●
US$700 million 5.25% Notes
(XS0873630742) (optional redemption date falling on 23 December
2021)
●
US$1,000 million 5.25% Notes
(XS1426796477) (optional redemption date falling on 20 January
2022)
The
redemption of these bonds would reduce interest costs by
approximately US$125 million per annum.
Prudential
intends to give formal notice of redemption to the holders of the
foregoing bonds in accordance with the terms of the relevant bond
documentation in due course, in order to redeem each of these bonds
at the optional redemption dates identified above. For the
avoidance of doubt, this announcement is for information purposes
only and does not constitute a notice to holders for the purposes
of any of Prudential's securities.
Prudential
also continues to monitor the market for other opportunities to
further reduce its interest costs by raising new debt to refinance
higher coupon existing debt (in addition to the bonds identified
above) on scheduled call dates and/or maturity dates.
1After
deduction of the underwriting fees and other estimated expenses
payable in connection with the Share Offer.
Notes
to Editors
Enquiries:
Media
Investors/Analysts
Addy
Frederick +44 (0)20 3977
9399
Patrick
Bowes
+44 (0)20 3977 9702
Ping
Ping
Tan
+65 9845 8904
William Elderkin +44 (0)20
3977 9215
About
Prudential plc
Prudential
plc provides life and health insurance and asset management, with a
focus on Asia and Africa. The business helps people get the most
out of life, by making healthcare affordable and accessible and by
promoting financial inclusion. Prudential protects people's wealth,
helps them grow their assets, and empowers them to save for their
goals. The business has more than 17 million life customers in Asia
and Africa and is listed on stock exchanges in London, Hong Kong,
Singapore and New York. Prudential is not affiliated in any manner
with Prudential Financial, Inc. a company whose principal place of
business is in the United States of America, nor with The
Prudential Assurance Company Limited, a subsidiary of M&G plc,
a company incorporated in the United Kingdom.
Disclaimers
This
announcement does not purport to contain all of the information
that may be required by or may otherwise be important to you and
you should conduct your own due diligence and independent analysis
of Prudential and the information contained herein. This
announcement has been prepared solely for information purposes and
does not constitute any recommendation regarding the securities of
Prudential and does not and should not be considered as any form of
financial or investment option or recommendation by Prudential or
any of its directors, supervisors, management, employees, agents,
affiliates, advisers or representatives
("Representatives").
This
announcement does not constitute or form part of any offer or
invitation to purchase, acquire, subscribe for, sell, dispose of or
issue, or any solicitation, commitment or advertisement of any
offer to purchase, acquire, subscribe for, sell or dispose of, any
securities of Prudential in any jurisdiction, nor shall it (or any
part of it) or the fact of its distribution form the basis of, or
be relied on in connection with, any contract or commitment
therefor.
The
Offer Shares have not been and will not be registered under the
U.S. Securities Act of 1933, as amended (the "U.S. Securities
Act"), and may not be offered or sold in the United States or to,
or for the account or benefit of, U.S. persons (as such term is
defined in Regulation S under the U.S. Securities Act) absent
registration or an exemption from, or in a transaction not subject
to, the registration requirements of the U.S. Securities Act and in
accordance with applicable U.S. state securities laws. Prudential
does not intend to register the Offer Shares in the United States
or to conduct a public offering of securities in the United
States.
Forward-looking statements
This
announcement may contain 'forward-looking statements' with respect
to certain of Prudential's plans and its goals and expectations
relating to the proposed redemption of certain debt securities and
its future financial condition, performance, results, strategy and
objectives. Statements that are not historical facts, including
statements about Prudential's beliefs and expectations and
including, without limitation, statements containing the words
'may', 'will', 'should', 'continue', 'aims', 'estimates',
'projects', 'believes', 'intends', 'expects', 'plans', 'seeks' and
'anticipates', and words of similar meaning, are forward-looking
statements. These statements are based on plans, estimates and
projections as at the time they are made, and therefore undue
reliance should not be placed on them. By their nature, all
forward-looking statements involve risk and
uncertainty.
A number of important factors could cause
Prudential's actual future financial condition or performance or
other indicated results of the entity referred to in any
forward-looking statement to differ materially from those indicated
in such forward-looking statement. Such factors include, but are
not limited to, the impact of the current Covid-19 pandemic,
including adverse financial market and liquidity impacts, responses
and actions taken by governments, regulators and supervisors, the
impact to sales, claims and assumptions and increased product
lapses, disruption to Prudential's operations (and those of its
suppliers and partners), risks associated with new sales processes
and information security risks; future market conditions, including
fluctuations in interest rates and exchange rates, the potential
for a sustained low-interest rate environment, and the impact of
economic uncertainty, asset valuation impacts from the transition
to a lower carbon economy, derivative instruments not effectively
hedging exposures arising from product guarantees, inflation,
including interest rate rises as a response, and deflation and the
performance of financial markets generally; global political
uncertainties, including the potential for increased friction in
cross-border trade and the exercise of executive powers to restrict
trade, financial transactions, capital movements and/or investment;
the policies and actions of regulatory authorities, including, in
particular, the policies and actions of the Hong Kong Insurance
Authority, as Prudential's Group-wide supervisor, as well as new
government initiatives generally; given its designation as an
Internationally Active Insurance Group, the impact on Prudential of
systemic risk and other group supervision policy standards adopted
by the International Association of Insurance Supervisors; the
impact of competition and fast-paced technological change; the
effect on Prudential's business and results from, in particular,
mortality and morbidity trends, lapse rates and policy renewal
rates; the physical, social and financial impacts of climate change
and global health crises on Prudential's business and operations;
the timing, impact and other uncertainties of future acquisitions
or combinations within relevant industries; the impact of internal
transformation projects and other strategic actions failing to meet
their objectives; the effectiveness of reinsurance for Prudential's
businesses; the risk that Prudential's operational resilience (or
that of its suppliers and partners) may prove to be inadequate,
including in relation to operational disruption due to external
events; disruption to the availability, confidentiality or
integrity of Prudential's information technology, digital systems
and data (or those of its suppliers and partners); any ongoing
impact on Prudential of the demerger of M&G plc and the
demerger of Jackson Financial Inc.; the impact of changes in
capital, solvency standards, accounting standards or relevant
regulatory frameworks, and tax and other legislation and
regulations in the jurisdictions in which Prudential and its
affiliates operate; the impact of legal and regulatory actions,
investigations and disputes; and the impact of not adequately
responding to environmental, social and governance issues. These
and other important factors may, for example, result in changes to
assumptions used for determining results of operations or
re-estimations of reserves for future policy benefits. Further
discussion of these and other important factors that could cause
Prudential's actual future financial condition or performance or
other indicated results of the entity referred to in any
forward-looking statements to differ, possibly materially, from
those anticipated in Prudential's forward-looking statements can be
found under the 'Risk Factors' heading in Prudential's 2021 Half
Year Report and the 'Risk Factors' heading of Prudential's most
recent Half Year Report on Form 6-K filed with the U.S. Securities
and Exchange Commission ("SEC"). Prudential's most recent Half Year
Report and Form 6-K are available on its website
at www.prudentialplc.com.
Any
forward-looking statements contained in this announcement speak
only as of the date on which they are made. Each of Prudential and
its Representatives expressly disclaims any obligation to update
any of the forward-looking statements contained in this
announcement or any other forward-looking statements it may make,
whether as a result of future events, new information or otherwise
except as required pursuant to the UK Prospectus Rules, the UK
Listing Rules, the UK Disclosure Guidance and Transparency Rules,
the Hong Kong Listing Rules, the SGX-ST listing rules or other
applicable laws and regulations.
Prudential
may also make or disclose written and/or oral forward-looking
statements in reports filed with or furnished to the FCA, the SEC
or other regulatory authorities, as well as in its annual report
and accounts to shareholders, periodic financial reports to
shareholders, proxy statements, offering circulars, registration
statements, prospectuses and prospectus supplements, press releases
and other written materials and in oral statements made by
directors, officers or employees of Prudential to third parties,
including financial analysts. All such forward-looking statements
are qualified in their entirety by reference to the factors
discussed under the 'Risk Factors' heading in Prudential's 2021
Half Year Report and the 'Risk Factors' heading of Prudential's
most recent Half Year Report on Form 6-K filed with the SEC. These
factors are not exhaustive as Prudential operates in a continually
changing business environment with new risks emerging from time to
time that it may be unable to predict or that it currently does not
expect to have a material adverse effect on its
business.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
Date: 22 October 2021
|
PRUDENTIAL
PUBLIC LIMITED COMPANY
|
|
|
|
By: /s/ Mark FitzPatrick
|
|
|
|
Mark
FitzPatrick
|
|
Group
Chief Financial Officer and Chief Operating Officer
|