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Old Mutual raises R2bn in bond issuance

Africa Global Funds
Nov. 17, 2020, 5:20 p.m.
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Old Mutual, a Pan-African financial services Group, has concluded a successful bond issuance, raising R2bn and attracting new investors in the process.  

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Old Mutual, a Pan-African financial services Group, has concluded a successful bond issuance, raising R2bn and attracting new investors in the process.  

Backed by the JSE, Old Mutual has a R25bn Multi-Issuer Note Programme currently in place.

The Group has already allowed for around R2.25bn in redemptions this year to date and has a further R4.75bn and R500m in issue from Old Mutual Limited and Old Mutual Insure respectively.  

With its latest bond issuance, the Group initially planned on issuing R1.5bn in bonds.

However, a hugely positive response from investors saw the Group issue a further R500m on the day, within pricing guidance. With this outcome, the Group has effectively secured listed debt financing at highly favourable rates despite the extremely difficult prevailing market conditions.  

Iain Williamson, Old Mutual Group CEO, said: “Staying true to the essence of our business built over 175-years, Old Mutual continues to work tirelessly to deliver real value to investors with a sense of assuredness and calm, especially in the face of adverse market conditions.”  

While the Group’s performance has been negatively impacted by a difficult macro environment and significant market volatility as a result of the ongoing Covid-19 pandemic, its embedded value remains robust and it continues to maintain very strong liquidity and solvency positions.  

Williamson highlighted that Group’s swift progress against its strategic priorities, designed to further strengthen its position. These include: the implementation of a range of significant digital improvements for customers and employees undertaken in record time during the lockdown; the continued provision of market-leading solutions such as the launch of a comprehensive, Personal Risk offer that enables clients to truly tailor the cover according to their needs; and ongoing comprehensive Covid-19 relief initiatives across the continent. This includes premium free life cover to qualifying healthcare workers in Kenya, Malawi, South Africa and Zimbabwe. Significant pledges towards high impact and sustainable initiatives that address educational needs, hygiene awareness, nutritional support and access to personal protective equipment for essential service workers across the continent. Customer and Small Business relief worth over R350m.

“With a strong foundation and proven resilience in the face of adversity, I believe that Old Mutual is best place to drive a range of investment solutions that instils confidence and delivers value for investors and all stakeholders alike,” said Williamson.  

 

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