TIDMJUST

RNS Number : 0582M

Just Group PLC

16 September 2021

 
 
NEWS RELEASE  www.justgroupplc.co.uk 
 

16 September 2021

JUST GROUP plc

SUCCESSFUL COMPLETION OF GBP325m SUSTAINABILITY RESTRICTED TIER 1 REFINANCING EXERCISE

Just Group plc ("Just") announces that it has successfully completed a refinancing exercise which will reduce the pre-tax interest costs of Just Group (the "Group") by GBP12m per annum and improve the Group's Solvency II post-tax organic capital generation by GBP10m per annum.

The refinancing exercise consists of the issuance of GBP325m of perpetual Sustainability Restricted Tier 1 bonds with a coupon of 5% ("Just Bonds") and a concurrent tender offer (the "Tender Offer") targeting Just's GBP300m 9.375% restricted tier 1 bonds, issued in March 2019 (the "Target Bonds"). Just has accepted for purchase GBP295m of Target Bonds pursuant to the Tender Offer, and intends to exercise its rights under the terms and conditions of the Target Bonds to redeem the GBP5m of outstanding Target Bonds.

This is the first issue of a sustainability RT1 bond by a European insurer:

 
            --   An amount equal to the net proceeds of the Just Bonds will be allocated 
                  to eligible green and/or social asset categories. Eligible green assets 
                  include renewable energy, green buildings, clean transportation, and 
                  eligible social assets include affordable housing and access to essential 
                  services. 
            --   The full eligibility criteria and Just's approach to sustainability 
                 investing and allocation of proceeds are set out in the Group's Sustainability 
                 Bond Framework, which has been published at https://www.justgroupplc.co.uk/investors/credit-investors 
 

The Just Bonds are listed on the Euro MTF market of the Luxembourg Stock Exchange , are rated BBB- by Fitch, and have the following key terms and conditions:

 
            --   GBP325m perpetual non-call 10 year structure 
            --   Annual fixed interest rate of 5% up to 30 September 2031 (the "Reset 
                  Date"), payable semi-annually in arrear 
            --   Optional redemption at any time from 30 March 2031 until the Reset 
                  Date 
            --   Restricted Tier 1 qualifying regulatory capital instrument under Solvency 
                  II 
            --   Issued by Just Group plc, the listed holding company of the Group 
 

David Richardson, Group Chief Executive, said:

"Just continues to be a market innovator with a strong social purpose and so we are delighted to launch this Sustainability RT1 Bond - the first of its kind in the UK and European insurance sector. We were very pleased by the high level of investor interest, which has allowed us to further optimise Just's capital structure, whilst improving organic capital generation . This will help to support profitable and sustainable growth for many years to come. "

 
 Enquiries 
 
  Investors / Analysts                   Media 
 
  Alistair Smith, Investor Relations     Stephen Lowe, Group Communications 
  Telephone: +44 (0) 1737 232 792        Director 
  alistair.smith@wearejust.co.uk 
                                         Telephone: +44 (0) 1737 827 301 
  Paul Kelly, Investor Relations         press.office@wearejust.co.uk 
  Telephone: +44 (0) 20 7444 8127 
  paul.kelly@wearejust.co.uk             Temple Bar Advisory 
                                         Alex Child-Villiers 
                                         William Barker 
                                         Telephone: +44 (0) 20 7002 1080 
 

A copy of this announcement will be available on the Group's website www.justgroupplc.co.uk

JUST GROUP PLC

GROUP COMMUNICATIONS

Enterprise House

Bancroft Road

Reigate

Surrey RH2 7RP

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END

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September 16, 2021 11:00 ET (15:00 GMT)

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