Aviva intend to buy back hybrid debt



  • A bit too deferential? He doesn't question the underlying principle of Aviva's action: I note he used the phrase "Aviva plc *announced* an ability to cancel certain irredeemable shares". I would have preferred "Aviva plc *claimed* an ability to cancel certain irredeemable shares".
  • A pity fixed income prices failed to recover from this botched effort
  • On the other hand you get a better yield if you buy now.
  • Bearing in mind we have the second wave of covid i'm wondering whether we're going to get a repeat of "pandemic panic" in the fixed income sector, like we seem to be getting with equities at the moment and what we saw in March this year. Keeping the powder dry at the moment !
  • Aviva continue to sell off "non-core" parts of the business generating lots of cash so wondering whether they might revisit the idea of "redeeming" some/all of these prefs but via an offer to holders at market price or better this time?

  • Aviva to redeem 6.625% Fixed/Floating Rate Notes
    Aviva plc to redeem £450,000,000 6.625 per cent Fixed / Floating Rate Notes due 2041
    (ISIN: XS0631092581, Common Code: 063109258)

    Aviva plc (the "Issuer") announces that notification has been given to the holders of the £450,000,000 6.625 per cent Fixed / Floating Rate Notes due 2041 (the "Notes'') that it shall redeem the Notes in full on 3 June 2021 (i.e. the First Call Date) at their principal amount together with accrued interest to (but excluding) 3 June 2021.

    In addition, the Issuer will apply to the Financial Conduct Authority (the "FCA") to cancel the listing of the Notes on the official list of the FCA.

    Capitalised terms not otherwise defined herein have the meanings given to them in the Terms and Conditions of the Notes.

    ... notice issued a couple of hours ago. I notice that the 8 3/4% cum prefs went up in price to 140.92
  • Think it's a matter of time until they make an offer to buy these back. Simply too expensive for them given current rates and bullish credit markets. Having said that, I'm not sure I would accept any offers as there is nothing that pays anywhere near as good as when i bought them, so won't be able to replace. I also like the name.
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