Abrdn £210m bond attracts £1.75bn of orders

Abrdn CEO Stephen Bird

Edinburgh-based asset management giant Abrdn plc announced that it priced its Additional Tier 1 bond issue of £210 million at 5.25% — as bond market reports said the offer attracted more than £1.75 billion of orders at one stage.

The deal is the first Additional Tier 1 bond issued by an asset manager which is designed to comply with the new UK prudential regime for investment firms.

Abrdn announced on December 2 it would issue Additional Tier 1 debt of £200 million to optimise its capital structure amid the news it would acquire Manchester-based investment platform Interactive Investor for £1.49 billion.

“We have successfully priced the AT1 bond issue that we announced on 2 December,” said Abrdn CEO Stephen Bird.

“This innovative and inaugural asset manager AT1 transaction optimises abrdn’s capital position.

“We are delighted with the engagement and response from our investors who are participating in the transaction.”

Abrdn manages and administers £532 billion of assets around the world.

The company said in a statement: “Abrdn plc today announces that it has successfully priced £210,000,000 5.25 per cent. Fixed Rate Reset Perpetual Subordinated Contingent Convertible Notes, which will be issued on 13 December 2021.

“The Notes are subject to the terms and conditions set out in the preliminary offering circular dated 2 December 2021 relating to the Notes.

“The transaction represents the first Additional Tier 1 issued by an Asset Manager which is designed to comply with the new UK prudential regime for investment firms which becomes effective on 1 January 2022.

“Application will be made for the Notes to be admitted to trading on the International Securities Market of the London Stock Exchange plc.”

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