Phoenix Group Holdings plc, owner of Standard Life, announced the completion of the initial phase of its deleveraging programme, comprising a debt redemption and refinancing exercise.

“This is in support of the group’s stated deleveraging programme, where it intends to repay at least £500 million of debt and is targeting a Solvency II leverage ratio of c.30% by the end of 2026,” said Phoenix.

“On 3 May 2024 the group announced that it would fully redeem its £250 million Tier 2 notes due 2029 on their first call date of 13 June 2024, which have now been fully repaid.

“The group has also prudently chosen to re-finance $500 million of its outstanding Restricted Tier 1 (RT1) notes callable in early 2025 through a tender exercise, and successfully issued $500 million of new RT1 notes at a $ coupon of 8.5%.

“The group has therefore reduced its outstanding debt by £250 million, with its annual debt interest costs broadly unchanged after this redemption and refinancing exercise. As a result, the group maintains its strong cash interest cover of c.6 times.”