Investor news

LEGAL & GENERAL UNWINDS COLLATERALISED DEBT OBLIGATION TRANCHE STRUCTURE

 

 

Legal & General Group Plc (“Legal & General”) today announced it has unwound 4 collateralised debt obligations (CDO’s), held within Legal & General Retirement, totalling over £1 billion. The CDO’s were created in 2007/8 and held within a special purpose vehicle (SPV).

 

There was no transaction costs associated with the restructuring and Solvency II capital will reduce by circa £100 million. The future interest payments on the unwound CDO’s will continue to be paid to Legal & General until 2017/18.

 

Mark Gregory, Group Chief Finance Officer said:

 

“This unwinding of the £1 billion of CDO’s has been executed effectively, and delivers £100 million of capital efficiency. It represents a further step in simplifying our asset strategy as we continue to focus on delivering better risk adjusted returns for shareholders and benefits to pensioners.”

 
 

ends

 

For further information, please contact:

Investors:

Laura Doyle        Head of Investor Relations                        020 3124 2088

Sujee Rajah        

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