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.”
For further information, please contact:
Laura Doyle Head of Investor Relations 020 3124 2088
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